The Justice Department announced Wednesday that Disney agreed to pay a $10 million civil penalty to resolve allegations it violated federal children’s privacy laws through its massive YouTube operation.
The case centers on advertising practices tied to child-focused content.
Federal prosecutors alleged Disney failed to properly classify certain videos as directed toward children, allowing targeted advertising and data collection without the parental consent required under the Children’s Online Privacy Protection Act.
COPPA bars online services from collecting or using personal information from children under thirteen unless parents receive notice and provide verifiable consent before any data is gathered.
Violations carry serious penalties.
According to the complaint, Disney’s failure to label videos correctly resulted in ads being served to child viewers and personal data being collected through YouTube at an enormous scale. Officials highlighted billions of views.
The Justice Department emphasized Disney’s extraordinary reach, noting that its YouTube content attracts billions of views in the U.S. and appeals heavily to young audiences. That scale magnified potential harm.
The case was brought in federal court in California and resolved through a stipulated order, allowing Disney to settle without admitting liability or proceeding to trial. The court approved the agreement.
Under the settlement, Disney must pay $10 million and is barred from operating on YouTube in any way that violates COPPA going forward.
The order also requires Disney to establish a comprehensive compliance program, including internal controls, employee training, and systems to accurately identify child-directed content. Audits and reviews are expected.
Assistant Attorney General Brett Shumate said the government is committed to protecting parents’ rights and ensuring companies do not exploit children’s data for profit. He warned that enforcement will continue, as Trending Politics reported.
The enforcement action sends a message to Big Tech that size and popularity do not excuse failures to follow the law governing children’s online privacy. Compliance is not optional.
COPPA has been in effect since 2000 and is enforced by the Federal Trade Commission, which has repeatedly targeted digital platforms that misclassify child-focused content.
Penalties have increased over time.
Disney’s YouTube channel boasts more than 6.5 million subscribers, placing it among the most influential family entertainment brands operating online today. That influence carries responsibility.
Parents expect safeguards.
The settlement does not include findings beyond the government’s allegations, but it reinforces rising scrutiny over how corporations treat children in digital spaces. Lawmakers have demanded action.
Officials say accurate labeling of content is critical to stopping unauthorized data collection and ensuring parents retain control over their children’s online experiences. Mistakes can be costly.
As regulators tighten enforcement, the Disney case underscores a broader crackdown on tech companies accused of placing profits ahead of parental consent and child privacy protections.
