Walt Disney will have to pay $10 million to settle U.S. Federal Trade Commission allegations that the company unlawfully allowed personal data to be collected from children who viewed kid-directed videos on YouTube without obtaining parents’ consent.

The FTC had alleged that Disney did not designate any YouTube videos as being made for children when they were added to the platform. The mislabeling further allowed Disney to collect personal data from viewers were under age 13 and use that data for targeted advertising to children.

According to the complaint, Disney violated the U.S. Children's Online Privacy Protection Rule. The rule requires websites, apps and other online services that are directed to children under 13 to notify parents about what personal information they collect, and obtain verifiable parental consent before collecting such information, according to the FTC.

The proposed order requires Disney to "implement an audience designation program to ensure its videos are properly directed as 'made for kids' where appropriate," said a Tuesday court filing.

A Disney spokesperson said, "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".

The spokesperson from Disney added that the company 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".