The Walt Disney Co. has reached a $10 million settlement with the Federal Trade Commission to resolve an inquiry into alleged violations of child privacy laws, the agency announced on Tuesday, September 2, 2025. The settlement centers on Disney’s failure to properly designate certain videos uploaded to YouTube as children’s content, which inadvertently allowed those videos to be targeted by online advertisers, breaching regulations designed to protect young viewers according to Axios.
The issue stems from videos posted on YouTube that were aimed at children but lacked the appropriate markers required under the Children’s Online Privacy Protection Act (COPPA). This federal law mandates strict guidelines for handling personal information collected from children under 13 and requires platforms to clearly identify content intended for young audiences. By not labeling the videos correctly, Disney allowed third-party advertisers to target children with ads, a practice that drew scrutiny from regulators. The lapse exposed Disney to potential violations, as COPPA prohibits unauthorized data collection and targeted advertising to children without parental consent.
The settlement does not involve content hosted on Disney’s own platforms, such as Disney+ or its official websites, but rather focuses on videos uploaded to YouTube, a third-party platform. Disney emphasized that the violations were unintentional and occurred outside its controlled ecosystem. The company has since taken steps to address the issue, implementing stricter internal protocols to ensure compliance with child privacy laws across all platforms where its content appears.
As part of the settlement, Disney will pay the $10 million penalty and enhance its compliance measures. The company has already begun investing in advanced tools to better monitor and categorize its content, aiming to prevent similar oversights in the future. This includes updating its content management systems to align with COPPA requirements and conducting regular audits to ensure adherence to federal regulations.
The settlement marks one of the largest penalties issued by the FTC for COPPA violations in recent years, reflecting the agency’s increasing focus on protecting children’s privacy in the digital age. For Disney, the agreement underscores the challenges of navigating complex regulations across multiple platforms, particularly third-party services like YouTube, where content control can be less straightforward.
Disney’s swift response to the inquiry and its commitment to improving compliance efforts highlight its efforts to maintain trust with families, a core demographic for the entertainment giant. The company, known for its family-friendly brand, has a long history of prioritizing child safety and is now reinforcing that commitment with proactive measures to safeguard young audiences in an evolving digital landscape.
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