WASHINGTON: The Walt Disney Company will pay a US$10 million (S$12.89 million) fine to settle a lawsuit by the Federal Trade Commission (FTC), which said the company violated federal law by allegedly allowing data to be collected on children under 13, Channel News Asia reported.
On Tuesday (Sept 2), the FTC said Disney violated the Children’s Online Privacy Protection Act (COPPA), which requires websites and apps for children under 13 to obtain parental consent before collecting personal information.
According to the complaint, Disney did not properly label some of its YouTube videos as “Made for Kids”, which allowed personal data from children under 13 to be collected and used for targeted advertising.
Disney representatives have not yet commented on the matter.
In 2019, Google, YouTube’s parent company, paid US$170 million in a similar settlement. /TISG
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