Disney to Pay $10 Million Fine in FTC Settlement Over Child Data Collection on YouTube

Disney has agreed to pay millions of dollars in penalties to resolve allegations brought by the Federal Trade Commission (FTC) that it unlawfully collected personal data from young viewers on YouTube without securing parental consent. Federal law under the Children’s Online Privacy Protection Act (COPPA) requires parental approval before companies can gather data from children under the age of 13. 

The case, filed by the U.S. Department of Justice on behalf of the FTC, accused Disney Worldwide Services Inc. and Disney Entertainment Operations LLC of failing to comply with COPPA by not properly labeling Disney videos on YouTube as “Made for Kids.” This mislabeling allegedly allowed the company to collect children’s data for targeted advertising purposes. 

“This case highlights the FTC’s commitment to upholding COPPA, which ensures that parents, not corporations, control how their children’s personal information is used online,” said FTC Chair Andrew N. Ferguson in a statement. 

As part of the settlement, Disney will pay a $10 million civil penalty and implement stricter mechanisms to notify parents and obtain consent before collecting data from underage users. The company will also be required to establish a panel to review how its YouTube content is designated. According to the FTC, these measures are intended to reshape how Disney manages child-directed content on the platform and to encourage the adoption of age verification t

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