WASHINGTON — Entertainment giant Walt Disney has agreed to pay $10 million to settle allegations by the U.S. Federal Trade Commission (FTC) that it unlawfully allowed the collection of personal data from children on YouTube.
The FTC said on Tuesday that Disney failed to properly label some of its videos as “made for kids” when uploading them to YouTube. Because of this, data was collected from viewers under 13 years old without notifying parents or securing their consent—a direct violation of the Children’s Online Privacy Protection Rule (COPPA).
That data, the complaint alleged, was then used for targeted advertising to children—something strictly prohibited under U.S. law.
The proposed settlement requires Disney to create an audience designation program to ensure its videos are correctly marked as child-directed content.
A Disney spokesperson clarified that the case does not involve Disney-owned platforms but rather its content distributed on YouTube.
“Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws,” the spokesperson said. “We remain committed to investing in tools that will allow us to continue being a leader in this space.”
Despite the settlement, the case highlights growing concerns about children’s safety online and how tech and entertainment companies handle sensitive data from young viewers.
