The Federal Trade Commission (FTC) has specific rules when it comes to delivering online content to children.
©Disney
You’ve probably seen an example of these rules if you’ve ever uploaded a video to YouTube, which asks if your content is specifically “Made for Kids.” This distinction brings YouTube’s content in line with a federal law that protects children from having their data collected and used for advertising. Now, though, according to Variety, the FTC has ordered Disney to pay $10 million for violating that law on the YouTube platform.
The FTC alleges that Disney did not designate certain videos on YouTube as “Made for Kids.” According to the FTC complaint, YouTube notified Disney in 2020 that 300 or so of its videos, which included clips from movies like Coco, Toy Story, The Incredibles, Tangled, and Frozen, had not been designated as “Made for Kids.” The complaint states that YouTube redesignated the videos itself, but had to continue doing so with videos posted by Disney up until recently.
©Disney
YouTube users can designate videos individually or at the channel level for the kids’ distinction. The complaint alleges that Disney’s policy designated videos at the channel level, but then the company also posted videos oriented to children to its “Not Made for Kids” channels. Those videos include cartoons, sing-alongs, and actors reading children’s books. Meanwhile, Disney obtains a share of YouTube’s ad revenue on the videos it posts, as well as sells advertising directly to YouTube. Comments and autoplay are also disabled on “Made for Kids” videos on YouTube.
“Disney’s failure to accurately designate child-directed videos as MFK results in YouTube collecting personal information and placing targeted advertisements on child-directed videos on Disney’s behalf,” the complaint states.
©Disney
As a result, Disney has agreed to pay $10 million. In a statement, Disney said, “Supporting the well-being and safety of kids and families is at the heart of what we do. This settlement does not involve Disney owned and operated digital platforms but rather is limited to the distribution of some of our content on YouTube’s platform. Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space.”
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A $10 million fine…but you know Disney wouldn’t have done it if it wasn’t worth it to them…I wonder how much they were able to generate?