The Walt Disney Company has agreed to pay $10 million to resolve allegations that it violated federal child privacy laws by improperly collecting personal data from children online, according to an announcement from the U.S. Department of Justice. The settlement addresses claims that Disney failed to comply with the Children’s Online Privacy Protection Act (COPPA) in connection with its content on YouTube.
Federal authorities alleged that Disney subsidiaries did not adequately protect the personal information of children under the age of 13, a core requirement under COPPA. The law restricts online platforms and content providers from collecting, using, or disclosing children’s personal data without first obtaining verifiable parental consent.
Allegations Involving YouTube Content
The government’s complaint focused on Disney’s management of certain YouTube channels and videos that were directed at children. According to the Justice Department, Disney allegedly failed to properly classify some videos as child-directed content. As a result, personal information was collected from young viewers without parental authorization, and targeted
advertising was allegedly enabled in violation of federal law.
The lawsuit named Disney Worldwide Services Inc. and Disney Entertainment Operations LLC as defendants. Officials said the alleged violations occurred over several years and involved repeated failures to follow COPPA’s strict notice and consent requirements.
COPPA requires operators of online services to clearly notify parents about data collection practices and to obtain permission before collecting information such as persistent identifiers, which can be used to track user behavior online. The Justice Department stated that Disney’s practices fell short of those standards.
Settlement Terms and Injunction
As part of the settlement, Disney agreed to pay a $10 million civil penalty, one of the larger COPPA-related penalties imposed in recent years. In addition to the monetary payment, the agreement includes a court-approved injunction requiring Disney to change its practices moving forward.
Under the injunction, Disney must ensure that child-directed content on YouTube and similar platforms is properly identified. The company is also required to implement a comprehensive compliance
program designed to prevent future violations of child privacy laws. This includes internal oversight, updated policies, and training related to COPPA compliance.
Federal officials emphasized that the injunction is intended to protect
children’s privacy rights and prevent similar conduct in the future, not simply to punish past behavior.
DOJ and FTC Emphasize Child Privacy Enforcement
The Justice Department said the case underscores the government’s commitment to enforcing federal child privacy protections in the digital space. Officials noted that as more children consume online content, particularly through video streaming platforms, companies must take greater care to comply with privacy laws designed to safeguard minors.
The case originated from a referral by the Federal Trade Commission (FTC), which shares enforcement authority over COPPA. The FTC has increasingly focused on how major media and technology companies handle children’s data, especially in environments where targeted advertising and behavioral tracking are common.
Government officials stated that protecting children online remains a top enforcement priority, warning that companies cannot avoid responsibility by mislabeling or failing to properly categorize content intended for young audiences.
Broader Implications for Media Companies
The Disney settlement highlights the growing legal and regulatory risks facing media companies that produce content for children. As regulators continue to scrutinize data practices across digital platforms, companies are expected to invest more heavily in compliance infrastructure and oversight.
Legal experts note that COPPA enforcement has expanded in recent years, with regulators paying closer attention to how content creators, advertisers, and platforms interact. Failure to accurately designate child-directed content can expose companies to significant financial penalties and reputational harm.
The case also serves as a warning to companies that rely on third-party platforms, such as YouTube, for content distribution. Even when operating on external platforms, content owners remain responsible for ensuring compliance with applicable privacy laws.
Disney Response
Disney did not publicly admit wrongdoing as part of the settlement. The agreement resolves the government’s claims without further litigation, allowing the company to move forward while implementing the required compliance measures.
While Disney has not issued a detailed public statement regarding the settlement, the outcome brings renewed attention to the responsibilities of major entertainment companies in safeguarding children’s personal information in an increasingly digital media landscape.
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