Important News

Court Approves Order Requiring Disney to Pay $10 Million to Settle FTC Allegations the Firm Enabled the Unlawful Collection of Children’s Personal Data

Interesting: 0/0 • Support: 0/0Log in to vote

Key takeaways

  • A federal judge has approved an order requiring Disney to pay $10 million.
  • The payment settles allegations brought by the Federal Trade Commission.
  • The FTC alleged Disney allowed personal data to be collected from children who viewed kid-directed videos on YouTube.
  • The item references an earlier FTC press release about the $10 million settlement.
  • The court order approval finalizes the settlement resolving the FTC’s claims.

Follow Up Questions

What specific types of personal data did the FTC allege were collected from children?Expand

Public FTC documents say Disney (through YouTube) collected children’s “personal data” and used it for targeted advertising, but they do not list out each data type. Because the case is brought under COPPA and concerns targeted ads on YouTube, that “personal data” is understood to be persistent identifiers and other tracking data (such as cookies or similar online identifiers) used to follow kids across viewing sessions and serve personalized advertising, rather than things like names or addresses; however, the complaint and press releases do not spell out a more detailed list.

Which laws or FTC rules did the agency say Disney violated (for example, COPPA)?Expand

The FTC and Department of Justice alleged that Disney violated:

  • The Children’s Online Privacy Protection Rule (COPPA Rule), which implements the Children’s Online Privacy Protection Act (COPPA), by collecting children’s personal information via YouTube without parental notice and verifiable consent.
  • Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45), which prohibits unfair or deceptive acts or practices (this is stated in the court’s Order for Permanent Injunction).
Does the court order include requirements beyond the $10 million payment, such as changes to Disney’s data practices or injunctive relief?Expand

Yes. Beyond the $10 million civil penalty, the court’s Order for Permanent Injunction requires Disney to:

  • Comply with COPPA going forward, including providing notice to parents and obtaining verifiable parental consent before collecting personal information from children under 13.
  • Establish and maintain a program to review whether its YouTube videos should be designated as “Made for Kids,” unless YouTube itself deploys effective age‑assurance for all users or stops letting creators label videos as “Made for Kids.” These obligations are injunctive relief that binds Disney in addition to the monetary penalty.
Which Disney channels, properties, or videos on YouTube were implicated and how many children may have been affected?Expand

The FTC’s September 2025 complaint focused on Disney videos uploaded to YouTube that were mis‑classified as “Not Made for Kids” even though they were directed to children. The complaint specifically mentions videos featuring child‑directed content and music from Disney/Pixar properties such as The Incredibles, Coco, Toy Story, Frozen, and Mickey Mouse. Public filings describe “many” such videos and channels but do not state exactly which channels were included or how many individual children were affected; available documents only indicate that a large number of child viewers were exposed and their data was used for targeted advertising.

Will parents or affected users be notified or receive any form of compensation or remediation?Expand

Public FTC and court documents describe the settlement as a civil penalty and injunctive order payable to the U.S. government; they do not provide for direct payments or automatic compensation to parents or children. The materials also do not mention any requirement that Disney or YouTube notify specific affected users or parents. Any private class actions seeking compensation would be separate from this FTC/DOJ enforcement case.

Did Disney admit wrongdoing as part of the settlement or is the payment a civil penalty/consent order without admission?Expand

No admission of wrongdoing. The $10 million is a civil penalty imposed through a stipulated Order for Permanent Injunction, Civil Penalty Judgment, and Other Relief. In such FTC/DOJ settlements, defendants typically resolve the case “without admitting or denying” the complaint’s allegations, and available public documents treat the payment as a civil penalty under COPPA rather than a confessed liability; none state that Disney formally admitted legal wrongdoing.

Where can I read the full FTC press release and the court order text?Expand

Comments

Only logged-in users can comment.
Loading…