Disney Agrees to Pay $10M Over Children’s Privacy Violations on YouTube
The Walt Disney Company, a name long associated with family entertainment and childhood memories, has agreed to pay $10 million to settle claims that it violated US children’s privacy laws. The case centres on how some Disney content was handled on YouTube, specifically, whether videos meant for kids were properly labelled.
Federal regulators say that because some videos were not clearly marked as “made for children,” young viewers may have been exposed to targeted advertising and had their personal data collected without their parents knowing. Disney has not admitted to breaking the law, but it has agreed to the settlement and to take steps to improve how it handles children’s content going forward.
The case is a reminder that even companies built around kids’ entertainment are being closely watched as children spend more time online than ever before.
Why Children’s Privacy Laws Exist
The issue revolves around a federal law called the Children’s Online Privacy Protection Act, or COPPA. Passed in 1998, the law was created to protect kids under the age of 13 when they are online. Its goal is simple: parents should know when companies collect information about their children, and they should have a say in it.
Under COPPA, companies that create content aimed at children must clearly label it. On platforms like YouTube, those labels matter a lot. When a video is marked as “made for kids,” it limits what data can be collected and prevents targeted advertising that is based on user behaviour or interests.
Regulators argue that Disney did not always label its children’s videos correctly. Because of that, they say YouTube was able to collect data from kids watching Disney content and serve them targeted ads — something the law is designed to prevent unless parents are informed and give consent.
Officials stress that the issue isn’t about whether the ads were harmful, but about whether the rules meant to protect children were followed.
Pandemic-Era Content Raised Red Flags
According to court documents, Disney dramatically increased its YouTube activity during the early days of the COVID-19 pandemic. With families stuck at home and children spending more time on screens, Disney uploaded content across more than 1,250 YouTube channels through various subsidiaries.
Many of those videos featured well-known franchises like Frozen, Toy Story, and The Incredibles — titles that are widely associated with young audiences. Regulators argue that these videos should have been clearly identified as child-directed from the beginning.
The government says Disney was alerted to labelling problems as early as June 2020. At that time, YouTube reportedly informed Disney that it had reclassified more than 300 videos after determining they were aimed at children but not labelled properly.
Despite those warnings, regulators claim similar issues continued. In legal filings, government attorneys said that mislabeling allowed YouTube to collect personal information from children and run targeted ads on Disney content.
Disney has not publicly disputed the details of the claims, but it has emphasised that the settlement only applies to some of its YouTube content and not to platforms it owns and operates itself.
What the Settlement Means for Disney
As part of the agreement, Disney will pay $10 million and put new systems in place to ensure it complies with children’s privacy laws in the future. The Department of Justice said the settlement also requires Disney to create a program focused on properly identifying children’s content and protecting kids’ data.
In announcing the settlement, a Justice Department official said the government is committed to making sure parents remain in control of how their children’s information is collected and used online.
Disney confirmed it agreed to the terms that were first announced earlier this year. A company spokesperson said the settlement is limited to certain YouTube distributions and does not involve Disney’s own streaming services or websites.
The agreement covers two Disney units: Disney Worldwide Services Inc. and Disney Entertainment Operations LLC, which handle digital content distribution.
A Broader Warning for the Entertainment Industry
While $10 million is a relatively small amount for a company of Disney’s size, the case sends a strong signal to the broader entertainment industry. Regulators are watching how children’s content is handled online — especially on platforms run by third parties like YouTube.
The case highlights a growing challenge for media companies. Even when content is hosted on another platform, creators are still responsible for how their material is labelled and whether it follows the law.
For parents, the settlement serves as a reminder that children’s privacy protections exist, but they rely on companies following the rules carefully. For regulators, it reinforces the importance of enforcement at a time when children’s digital footprints are growing from an early age.
What Comes Next
Disney says it is committed to improving its compliance and preventing similar issues in the future. By agreeing to create a formal privacy program, the company appears to be signalling that it understands the seriousness of the concerns raised.
As online entertainment continues to expand, experts expect more cases like this, not just involving Disney, but other major brands that produce content for kids. The digital world moves quickly, and the rules around children’s data are becoming harder, not easier, to navigate.
For Disney, the settlement closes a legal chapter, but it also highlights the responsibility that comes with reaching millions of young viewers. In today’s online landscape, protecting children’s privacy isn’t just a legal requirement; it’s a public expectation.
