Federal Judge Orders $10 Million Settlement Over Child Data Collection on YouTube

USA: Federal Judge Orders $10 Million Settlement Over Child Data Collection on YouTube

A federal judge has ordered a major entertainment conglomerate to pay a $10 million civil penalty to resolve allegations that personal information from children was collected on YouTube without required parental notification or consent. The ruling follows a complaint filed by the Department of Justice, acting on a referral from the Federal Trade Commission (FTC), that the company violated the Children’s Online Privacy Protection Rule (COPPA).

Background of the Allegations

The FTC’s complaint asserted that Disney Worldwide Services, Inc. and Disney Entertainment Operations LLC failed to correctly label a number of child‑directed videos as “Made for Kids” (MFK) on the YouTube platform. By mislabeling the content, the companies allegedly enabled YouTube to harvest personal data from viewers under the age of 13 and use that data for targeted advertising, actions prohibited under COPPA.

Key Settlement Provisions

Under the court‑approved order, the company must: (1) pay a $10 million civil penalty; (2) adhere to COPPA requirements, including notifying parents before collecting personal information from children and obtaining verifiable parental consent; and (3) implement a systematic review process to determine whether future YouTube uploads should be designated as MFK, unless YouTube adopts age‑verification technologies that can reliably ascertain users’ ages.

Compliance Measures

The settlement obligates the firm to establish an internal program for ongoing assessment of video content, ensuring that any material intended for children is properly identified. The order also anticipates the broader industry shift toward age‑assurance tools, signaling that future compliance may depend on technological solutions that can verify a viewer’s age before data collection occurs.

Implications for Online Child Privacy

Consumer‑rights advocates view the enforcement action as a reinforcement of COPPA’s intent to protect minors from undisclosed data harvesting. The case highlights the challenges platforms face in balancing user‑generated content with regulatory obligations, particularly when third‑party creators upload material that attracts a youthful audience.

Future Enforcement Outlook

The FTC has indicated that it will continue to monitor compliance and may pursue additional actions against entities that neglect COPPA requirements. The agency’s collaboration with the Department of Justice in this matter underscores a coordinated approach to addressing privacy violations involving children’s data.

This report is based on information from Federal Trade Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.