The Walt Disney Company has agreed to pay a $10 million civil penalty to settle allegations by the Federal Trade Commission that it enabled the unlawful collection of children’s personal information on YouTube. The settlement stems from claims that Disney failed to properly designate certain videos as child-directed, allowing data from underage viewers to be gathered without parental notice or consent — a violation of the Children’s Online Privacy Protection Act (COPPA).
According to the FTC, Disney permitted personal data to be collected from kids watching videos aimed at children on YouTube, which then fed targeted advertising to those viewers. The agency alleged that by not labeling some of its YouTube videos as “made for kids,” Disney enabled the platform to treat them as general audience content, bypassing the protections intended for children under 13.
Those requirements date back to 2019, when YouTube settled its own COPPA case with the FTC and began mandating that content creators tag each upload as either “made for kids” or “not made for kids.” Videos marked “made for kids” are supposed to limit data collection, disable personalized ads, and restrict features such as comments. The FTC said Disney failed to ensure that its child-focused videos carried the proper designation, leading to the unlawful collection of young viewers’ data.
Under the proposed settlement, Disney will not only pay the $10 million fine but also implement a formal review program to determine whether videos it distributes on YouTube should be classified as “made for kids.” The company must also comply with all relevant children’s data protection rules going forward.
Disney emphasized in a statement to CNBC that the settlement does not pertain to its own digital platforms but rather to content it distributes on YouTube. “Supporting the well-being and safety of kids and families is at the heart of what we do,” the company 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. Disney 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.”
The FTC’s complaint represents one of the most prominent enforcement actions since its landmark settlement with YouTube six years ago and highlights how compliance remains a challenge even for companies with strong family-friendly brands. The settlement requires Disney to scrutinize its online distribution practices and ensure that child-directed content is properly labeled — a move regulators hope will curb the collection of data from children and prevent personalized advertising from reaching young audiences.
Axios was the first to report the agreement.
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