The Walt Disney Company will pay $10 million to settle claims from the Federal Trade Commission (FTC) that it broke federal rules by collecting personal data from children without proper consent.
The settlement, announced Tuesday, highlights how Disney allegedly mislabeled some of its videos on YouTube, allowing children to be exposed to tracking and advertising not meant for young audiences.
The FTC said Disney violated the Children's Online Privacy Protection Act (COPPA), a law that requires companies to get permission from parents before collecting data from children under 13, CBS News reported.
The law also requires companies to clearly identify content that is made for kids.
According to the FTC's complaint, Disney failed to mark certain videos—such as clips from movies like "Frozen," "Coco," "Toy Story," and "The Incredibles"—as "Made for Kids."
This mislabeling let YouTube run targeted ads on those videos, collecting data from young viewers who should have been protected under COPPA.
Disney to pay $10 million to settle FTC allegations the company enabled the unlawful collection of children’s personal data: https://t.co/boaYG3zulH /1
— FTC (@FTC) September 2, 2025
Disney to Launch New Video Review System After FTC Fine
FTC Chairman Andrew N. Ferguson said the case shows why stronger online safeguards are needed. "Our order penalizes Disney's abuse of parents' trust," he said.
"It also pushes for better age-assurance tools to protect kids online."
Disney responded by saying the issue only involved content on its YouTube channels, not any of its own websites or apps.
A company spokesperson added, "Disney has a long tradition of embracing the highest standards of compliance with children's privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space."
As part of the settlement, Disney must now create a new video review program to ensure that future uploads to YouTube are correctly labeled as being for children when necessary. The FTC says this step is key to preventing future violations.
According to AP, YouTube already has rules in place that require uploaders to mark videos as "Made for Kids" when children are the main audience or when the content clearly targets children. Failure to do so can lead to serious penalties under COPPA.
This isn't the first time the FTC has taken action in this area. In 2019, Google and YouTube paid $170 million to settle similar COPPA violations.
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