The Walt Disney Company has reached a $10 million settlement with U.S. regulators to resolve allegations of systematically violating children’s privacy protections through improper labeling of YouTube content. The entertainment conglomerate faced charges from the Federal Trade Commission and Justice Department for failing to identify child-directed videos, enabling unauthorized data collection and targeted advertising toward minors.
According to court documents filed in California, Disney subsidiaries uploaded content to over 1,250 YouTube channels since 2020, with many videos achieving substantial popularity particularly during COVID-19 lockdowns. The government’s complaint revealed that Disney knew about improper labeling issues as early as June 2020, when YouTube notified the company about reclassifying hundreds of videos from major franchises including The Incredibles, Toy Story, and Frozen.
The settlement stems from violations of the Children’s Online Privacy Protection Act (COPPA), which mandates parental notification and consent before collecting personal information from children under 13. Following YouTube’s 2019 settlement with regulators, the platform required content creators to properly label child-directed content to prevent prohibited data practices.
Justice Department official Brett Shumate emphasized the government’s commitment to ensuring parental control over children’s information, stating the settlement reflects this priority. Disney confirmed agreeing to terms initially announced in September, while noting the settlement only involves YouTube distribution and not company-operated digital platforms.
Beyond the financial penalty, Disney must establish a comprehensive compliance program to ensure future adherence to children’s data protection laws. The case highlights ongoing tensions between content creators and regulators regarding digital advertising practices directed at children.