Disney Pays $10 Million to Settle COPPA Violations

The Walt Disney Company has agreed to pay a $10 million civil penalty to settle allegations that it violated federal child privacy laws by mishandling data from children viewing its YouTube videos, the U.S. Department of Justice announced Tuesday. A federal court in California approved the settlement, which resolves claims brought by the Federal Trade Commission and resolves issues stemming from content uploaded between 2020 and 2022.

The case centered on Disney's failure to properly designate more than 300 YouTube videos as "Made for Kids," in violation of the Children's Online Privacy Protection Act, or COPPA. The law, enacted in 2000, prohibits websites and online services directed at children under 13 from collecting, using or disclosing their personal information without notifying parents and obtaining verifiable consent. By labeling channels or videos as not intended for children, Disney allegedly allowed targeted advertising and data collection from young viewers without parental involvement, according to the government's complaint filed in the U.S. District Court for the Central District of California.

The affected content included popular clips from Disney and Pixar...