Disney pays 10 million for YouTube privacy violations

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00:00Disney Pays $10 Million for YouTube Privacy Violations

00:03If your video features a talking snowman or a family of superheroes, the government expects you to admit it's for kids.

00:11This week, the U.S. Department of Justice announced that Disney will pay $10 million in civil penalties

00:16to settle allegations that it violated federal children's privacy laws by mislabeling some of its YouTube content.

00:23The case targets Disney Worldwide Services and Disney Entertainment Operations,

00:27which the Department of Justice accused of failing to properly mark certain videos as made for kids on YouTube.

00:34Without it, Disney and its advertising partners were allegedly able to serve targeted ads

00:39and collect personal data from viewers under 13, which is strictly prohibited without parental consent.

00:46Passed in 1998, back when streaming meant a garden hose,

00:50COPPA requires companies to get parents' permission before collecting personal information from kids online.

00:57The Justice Department is firmly devoted to ensuring parents have a say, said Assistant Attorney General Brett A. Shoemate.

01:04Brett A. Shoemate made a statement that strongly implies the government does not enjoy surprise targeted ads aimed at elementary schoolers.

01:12According to the complaint, the improperly labeled videos appeared across several Disney-owned channels,

01:17including Pixar, Disney+, Disney+, and Disney Animation Studios.

01:22The content featured characters from hits like The Incredibles, Frozen, Cocoa, and Tangled,

01:28movies famously beloved by adults who absolutely don't own Elsa pajamas.

01:33Disney told Axios that the settlement doesn't involve Disney-run platforms directly,

01:39and instead focuses on how some of its content was distributed on YouTube.

01:43After YouTube paid a $170 million settlement to the Federal Trade Commission in 2019 over COPPA violations,

01:51the platform rolled out mandatory made-for-kids labels.

01:54This case is one of the first times a content creator, rather than YouTube itself,

01:59has settled with the Department of Justice over COPPA.

02:02Beyond the $10 million fine, Disney must now run an ongoing review program

02:06to make sure its future uploads follow the rules.

02:09Thank you so much for joining us.