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Disney to Pay $10 Million to Settle Child Privacy Violation Claims

Washington D.C. – Disney has agreed to pay $10 million to settle allegations brought by the U.S. Federal Trade Commission (FTC) that it violated child privacy laws by unlawfully collecting children’s data through its YouTube channel. A federal court approved the settlement on Tuesday, resolving a civil case brought by the Department of Justice.

The FTC accused Disney of improperly designating over 300 YouTube videos, including content from popular franchises like The Incredibles, Toy Story, Frozen, and Mickey Mouse, as “Not Made for Kids.” This designation allowed Disney to collect personal data from children under 13 without parental consent, a violation of the Children’s Online Privacy Protection Rule (COPPA). YouTube requires content creators to categorize videos accordingly to ensure COPPA compliance.

In addition to the monetary penalty, the settlement mandates that Disney operate its YouTube channel in accordance with data protection rules and establish a comprehensive program to ensure future compliance with COPPA.

“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” stated Assistant Attorney General Brett A Shumate. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”

Disney, a global entertainment giant headquartered in Burbank, California, with revenues reaching $94.4 billion in fiscal year 2025, joins other major companies like Google and Microsoft in facing settlements under COPPA. The FTC’s action underscores its commitment to enforcing child privacy regulations in the digital age. Disney has not yet issued a formal statement regarding the settlement.

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