Disney to pay $10M in FTC settlement over children's privacy violations

The Walt Disney Co. agreed to pay $10 million to settle Federal Trade Commission allegations that it violated the Children's Online Privacy Protection Act by enabling data collection from children watching Disney content on YouTube.

Filed as a stipulated order in the Central District of California, the settlement awaits court approval and underscores the FTC's willingness to hold content creators--not just platforms--liable under COPPA. U.S.A. v. Disney Worldwide Services Inc., 2:25-cv-08223 (C.D. Cal., filed Sept. 2, 2025).

The DOJ alleged Disney subsidiaries mislabeled children's content by using channel-level "Not Made for Kids" tags instead of video-level labels, allowing YouTube to collect data from children under 13 for ads.

Mislabeled content included "The Incredibles," "Toy Story," "Frozen," "Coco," and "Mickey Mouse" programming. The misclassification exposed children to features like autoplay and comments, and the complaint noted Disney kept channel-level tags even after YouTube reclassified more than 300 of its videos in 2020.

Rebecca B. Durrant of Kelley Drye & Warren LLP represented Disney and deferred comment to her client, which emphasized its compliance record and commitment to family safety.

"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," a Disney statement said. "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."

YouTube Inc. did not immediately respond to a request for comment.

COPPA mandates parental consent for collecting children's online data. After YouTube's 2019 COPPA settlement with the FTC, creators must label videos as MFK or NMFK. Proper labeling stops personalized ads and data collection, also limiting viewer interaction. YouTube allows channel-wide settings but holds creators accountable for correct labeling.

The stipulated order requires Disney to implement a program to review individual videos for accurate classification, unless YouTube adopts effective age-assurance technology or eliminates creator-based labeling altogether.

"This case underscores the FTC's commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children's personal information online," said FTC Chairman Andrew N. Ferguson. "Our order penalizes Disney's abuse of parents' trust, and, through a mandated video-review program, makes room for the future of protecting kids online--age assurance technology."