00:00When kids click play on YouTube videos, they may be watching Disney and Disney may be watching them.
00:06Disney is paying a $10 million fine after federal regulators found the company failed to protect children's personal information online.
00:16The Federal Trade Commission says Disney violated the children's online privacy protection rule by collecting personal data from child-based videos without proper safeguards.
00:27The rule requires companies to get parental consent before collecting information from children under 13.
00:34It also directs the companies to limit online features like comments and targeted ads on child-directed content.
00:41The Justice Department filed a complaint saying Disney failed to label some YouTube videos as made for kids, leaving data-collecting features active.
00:51Under the settlement, Disney will pay $10 million, notify parents, obtain consent before collecting data, and check whether YouTube videos should be marked for kids.
01:02Disney says only a small portion of its content is involved and acknowledges labeling errors which led to the settlement.
01:09The complaint cites examples from Pixar, Disney+, and Disney Animation, including clips from Frozen, Moana, Cars, and Mickey Mouse, where videos were improperly marked.
01:21The FTC says YouTube warned Disney as early as 2020, but the company did not fully fix a problem.
01:28Read the full story right now on the Straight Arrow News mobile app or visit san.com.
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