Disney Fined Millions for Alleged Child Privacy Violations

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On Tuesday, the Justice Department announced a resolution with Disney regarding privacy concerns. A court has ordered Disney to pay $10 million in penalties after the Federal Trade Commission accused the company of violating the Children’s Online Privacy Protection Act (COPPA).

So, it turns out Disney was in hot water with the FTC. Apparently, they were collecting info from kids under 13 on their YouTube channel without getting proper permission from parents. You know how YouTube tracks what you watch and then shows you ads? Well, it does that for everyone, but the law says they need explicit parental consent before doing that with kids and using their data for targeted ads. It’s a pretty big deal, and the FTC called them out on it.

Disney is facing a lawsuit filed in California federal court claiming it didn’t properly label videos aimed at children on its platform, breaking the rules of the Children’s Online Privacy Protection Act (COPPA). The Justice Department points out that Disney’s videos on YouTube are viewed billions of times, meaning incorrectly labeled kids’ content could lead to significant advertising profits.

The government steps in when companies make money by marketing directly to children without getting permission from their parents.

COPPA Explained

The Children’s Online Privacy Protection Act (COPPA) was created in 1998 and became law in 2000. Its main goal is to protect children online by controlling what information websites can collect from them. Because websites can track users even without knowing their names or email addresses, COPPA gives parents the right to see and delete any personal information collected from their children.

This law applies to online content such as games, streaming services like YouTube, and mobile apps. The Department of Justice alleges that Disney collected data to create advertising profiles on children because they didn’t properly label videos aimed at them.

YouTube created the “Made for Kids” section to follow children’s online privacy laws (COPPA). When someone uploads a video, YouTube asks if it’s intended for children, or entire channels can be designated as such. It’s up to the person uploading the content to make this decision. If a video or channel is marked as for kids, YouTube stops showing targeted ads and limits the amount of data it collects.

The Department of Justice alleges that Disney failed to take those measures.

According to a statement from the Justice Department, Assistant Attorney General Brett A. Shumate emphasized the department’s commitment to giving parents control over their children’s personal information. He also stated that the department will quickly address and stop any illegal violations of parents’ rights to protect their children’s privacy.

Violations of COPPA can result in significant civil penalties and long-term compliance obligations.

Broader Implications

Beyond the $10 million penalty, the court is also requiring Disney to develop a plan to prevent future violations of children’s online privacy rules (COPPA) on YouTube. This means Disney will be closely monitored to ensure it follows these rules when operating on the platform.

Disney is choosing to settle this case without admitting any fault. However, this sends a clear message that protecting children’s privacy is a top concern for the government. This situation will likely serve as a warning to all companies that create content for children. As technology changes, it’s important to remember that even large companies can face legal consequences.

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2026-01-03 00:56