The Walt Disney Company will pay $10m (£7.4m) to resolve claims that it broke children's privacy laws by failing to label some YouTube videos as made for children, allowing for targeted advertising.

Disney had agreed to a settlement with the US Federal Trade Commission in September to resolve an inquiry into its collection of children's personal data.

The FTC had argued that, as a result of Disney's alleged failure to properly label children's videos, kids received targeted advertising and had their data collected without parental notice and consent.

The entertainment giant also agreed to create a program to comply with children's data protection laws, the US Department of Justice said on Tuesday.

"The Justice Department is firmly devoted to ensuring parents have a say in how their children's information is collected and used," Brett Shumate, an assistant attorney general in the justice department's civil division, said in a statement announcing the federal court order.