The Walt Disney Company has agreed to pay $10 million in civil penalties and comply with a court-ordered injunction to resolve allegations that it violated federal children’s privacy laws through its popular YouTube video content, the U.S. Department of Justice announced.
A federal court in California entered a stipulated order settling the case against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC, following a lawsuit brought by the United States after a referral from the Federal Trade Commission (FTC). The government alleged that Disney violated the Children’s Online Privacy Protection Act (COPPA) by improperly collecting personal information from children under 13 without parental notice or consent.
According to the Justice Department’s complaint, Disney failed to properly label thousands of YouTube videos as “made for kids,” a designation that limits data collection and targeted advertising. As a result, children viewing Disney content were allegedly served targeted advertisements, and their personal information—such as persistent identifiers used for advertising—was collected in violation of COPPA.
Disney operates more than 1,250 YouTube channels and has uploaded tens of thousands of videos, many featuring characters and franchises widely associated with children, including Frozen, Toy Story, Cars, Mickey Mouse, and Moana. Federal officials said Disney’s videos have generated billions of views in the United States, particularly during the COVID-19 pandemic.
Under COPPA, operators of child-directed online services must clearly notify parents about data collection practices and obtain verifiable parental consent before collecting or using children’s personal information. The government alleged that Disney’s reliance on channel-level settings—rather than reviewing individual videos—allowed child-directed videos to be incorrectly marked as not intended for children, enabling targeted advertising and data collection.
“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” said Brett A. Shumate, assistant attorney general for the Justice Department’s Civil Division. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”
In addition to the $10 million penalty, the court order bars Disney from operating on YouTube in ways that violate COPPA and requires the company to establish and maintain a compliance program to ensure future adherence to children’s privacy laws on the platform.
The lawsuit alleged violations of both COPPA and Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive business practices. The FTC enforces COPPA and referred the matter to the Justice Department for prosecution.
The case adds to growing federal scrutiny of how major media and technology companies handle children’s data online, particularly on platforms that rely heavily on advertising revenue.
