In a significant move addressing digital child privacy, Disney has agreed to pay $10 million to settle allegations of breaching United States child privacy laws, highlighting the growing importance of protecting young internet users' personal information.

The settlement, approved by a federal court, resolves claims brought by the US Federal Trade Commission and Department of Justice regarding improper data collection practices on YouTube.

At the heart of the case were over 300 YouTube videos featuring beloved characters from franchises like The Incredibles, Toy Story, Frozen, and Mickey Mouse. Disney was accused of incorrectly designating these videos as 'Not Made for Kids', which violated the Children's Online Privacy Protection Rule.

The rule strictly prohibits companies from collecting data from children under 13 without parental consent. By misclassifying content, Disney potentially exposed young viewers' personal information without proper safeguards.

As part of the settlement, Disney must now implement a comprehensive compliance program and operate its YouTube channel in strict accordance with data-protection regulations. Assistant Attorney General Brett A Shumate emphasized the Department of Justice's commitment, stating, "We are firmly devoted to ensuring parents have a say in how their children's information is collected and used."

This case follows similar settlements by tech giants like Google and Microsoft, signaling a broader industry shift towards more responsible digital practices. For Disney, a company with $94.4 billion in annual revenue, the settlement represents a proactive step in maintaining trust with families and consumers.

The resolution underscores the critical need for transparency and protection in digital platforms targeting young audiences, setting a positive precedent for responsible content creation and data management.