The Walt Disney Company has agreed to pay a $10 million civil penalty to settle allegations of violating the Children’s Online Privacy Protection Act (COPPA) through its YouTube content practices. The U.S. Department of Justice announced the settlement on December 30, 2025, following a complaint filed in a California federal district court against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC.
The allegations center on Disney’s failure to properly designate certain videos uploaded to its numerous YouTube channels as directed toward children under the age of 13. COPPA strictly prohibits online services from knowingly collecting personal information from children in this age group without first providing notice to parents and obtaining verifiable consent. The law aims to give parents control over their children’s data online and prevent unauthorized use of such information for purposes like targeted advertising, according to The Wall Street Journal.
According to the complaint, Disney maintained a policy of setting audience designations at the channel level rather than evaluating each individual video. This approach led to some child-directed content being incorrectly labeled as not made for kids. As a result, YouTube’s built-in protections for children’s content were not activated on those videos. Features such as targeted advertising using persistent identifiers continued, enabling the collection of personal data from young viewers without parental awareness or approval. Additionally, the mislabeling potentially exposed children to inappropriate platform elements, including autoplay recommendations leading to non-child-directed videos and unrestricted public comments.
Disney’s YouTube presence attracts billions of views in the United States, amplifying the scale of the alleged violations. The misclassifications occurred over a period beginning around 2020, despite prior guidance from YouTube on the importance of accurate designations to comply with COPPA following the platform’s own major settlement in 2019.
Under the terms of the stipulated order approved by the court, Disney will pay the $10 million penalty to the government. The agreement also imposes ongoing obligations to prevent future issues. Disney is prohibited from operating on YouTube in any manner that violates COPPA. Furthermore, the company must establish and implement a comprehensive program to review each video it publishes on the platform and determine whether it should be designated as made for kids. This measure aims to ensure consistent compliance moving forward, with oversight potentially extending for years.
The settlement reflects broader efforts by federal authorities to enforce children’s privacy protections in the digital space. Regulators have increasingly scrutinized how major media companies and platforms handle data from young users, particularly amid rising concerns about online advertising practices and exposure to unsuitable content. Previous high-profile COPPA cases, including those involving YouTube itself and other tech giants, have set precedents for substantial penalties and required operational changes.
This resolution underscores the importance of accurate content labeling on third-party platforms and the responsibility of content creators to prioritize parental rights in data collection decisions. While Disney has not admitted wrongdoing as part of the agreement, the case highlights ongoing challenges in aligning corporate policies with evolving privacy regulations designed to safeguard children online. The enforcement action serves as a reminder that violations in this area can result in significant financial and operational consequences for even the largest entertainment companies.
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