Disney Hit with $10 Million Fine for Violating Children’s Privacy on YouTube

In a landmark decision, Disney has been fined $10 million by the Federal Trade Commission (FTC) for violating the Children’s Online Privacy Protection Act (COPPA) by improperly collecting personal information from children under 13 on YouTube. The ruling also requires the entertainment giant to implement stricter safeguards for children’s content moving forward.

The FTC settlement stems from Disney’s mislabeling of popular videos, including Mickey Mouse, Frozen, Toy Story, and Cars as “not made for kids,” despite their clear appeal to young audiences. As a result, children were exposed to personalized advertising and data collection without parental consent, a direct violation of federal law.

According to the FTC, Disney had been informed in 2020 that many of its videos required reclassification but failed to update its policies. Instead, the company continued to categorize entire channels as not for children without reviewing individual videos, allowing targeted ads and data collection mechanisms to reach minors.

Under the terms of the settlement, Disney must now review every video individually, implement age verification systems, and obtain parental consent before collecting information from children under 13. FTC Chair Andrew Ferguson said,

“This settlement penalizes Disney for violating parents’ trust and ensures better protection of children’s privacy going forward.”

The ruling represents a significant precedent: it is the first time a major corporation, rather than a digital platform, has been penalized for violating children’s online privacy. The decision is expected to prompt closer scrutiny of content companies distributing material for children on third-party platforms. Disney stated that the case pertains only to videos uploaded to YouTube and reaffirmed its commitment to strict privacy standards and family protection.