The Walt Disney Co. has agreed to pay $10 million to settle allegations from the Federal Trade Commission that it violated federal law by enabling the unlawful collection of personal data from children under 13 who viewed kid-directed videos on YouTube. The settlement, announced Sept. 2, requires Disney to overhaul its process for designating videos on the platform and comply with the Children’s Online Privacy Protection Rule, known as the COPPA Rule.
According to the FTC complaint, filed by the Department of Justice in the U.S. District Court for the Central District of California, Western Division, Disney Worldwide Services Inc. and Disney Entertainment Operations LLC failed to properly label some videos uploaded to YouTube as “Made for Kids.” This mislabeling allowed YouTube to collect personal information from young viewers without notifying parents or obtaining their verifiable consent, as mandated by the COPPA Rule. The data was then used for targeted advertising to children, with Disney receiving a share of the ad revenues from YouTube and its own direct sales. Additionally, the error exposed children to inappropriate features, such as autoplay to non-kid videos.
“This case underscores the FTC’s commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children’s personal information online,” said FTC Chairman Andrew N. Ferguson. “Our order penalizes Disney’s abuse of parents’ trust, and, through a mandated video-review program, makes room for the future of protecting kids online—age assurance technology.”
The COPPA Rule, effective since 2000, applies to websites, apps and online services directed to children under 13, requiring parental notification and consent before collecting personal data. In 2019, following an FTC settlement with YouTube’s parent company, Google, which paid $170 million for similar violations, YouTube mandated that content creators designate videos as “Made for Kids” or “Not Made for Kids.” Videos marked as “Made for Kids” disable features like personalized ads, data collection and comments to safeguard young users.
Disney opted to designate videos at the channel level, defaulting them to “Not Made for Kids,” even for content featuring child-directed elements from films like The Incredibles, Coco, Toy Story, Frozen and Mickey Mouse. The FTC alleged that even after YouTube reclassified more than 300 Disney videos to “Made for Kids” in mid-2020, Disney continued its channel-level approach without reviewing individual videos.
Under the proposed order, approved unanimously by the FTC commissioners, Disney must pay the $10 million civil penalty, adhere to COPPA requirements and implement a review program for YouTube video designations unless YouTube adopts age assurance technologies to identify user ages or eliminates creator labeling. Age assurance could involve methods to determine age ranges, potentially streamlining compliance.
This marks Disney’s second major COPPA-related settlement. In 2011, its subsidiary Playdom paid $3 million for collecting and disclosing children’s personal information without consent. The current case highlights ongoing FTC scrutiny of tech and media companies’ handling of children’s data, with lessons for businesses: channel-level designations apply defaults to all videos, mislabeling risks violations and companies must prioritize accurate classifications to avoid collecting data without consent or exposing kids to harms like inappropriate content.
For parents in Southern Maryland, where families often turn to Disney content for entertainment and education via platforms like YouTube, the settlement serves as a reminder of the vulnerabilities in online spaces. Charles, Calvert and St. Mary’s counties have access to resources that can help navigate these issues. The Maryland Attorney General’s office partners with NetSmartz Workshop to provide interactive educational tools on online safety, including tips for parents on monitoring children’s internet use. Charles County Public Schools offers digital parenting guides, emphasizing safe media choices and online behavior for older kids. The Maryland Coalition Against Sexual Assault provides resources to teach youth about staying safe online, while the Maryland Center for School Safety operates an anonymous tipline for reporting concerns.
Maryland has taken state-level action to bolster child protections. In May 2024, Gov. Wes Moore signed the Maryland Kids Code, which limits data collection from children and shields them from unintended harmful content online, making Maryland the second state to enact such measures. However, in February 2025, trade group NetChoice sued to block the law, arguing it infringes on First Amendment rights by compelling censorship and vague standards, while creating privacy risks through required data impact assessments. Supporters, including advocacy groups, defend it as essential for child safety, countering that federal laws like COPPA do not preempt state efforts. The case remains ongoing, but the law’s focus on default privacy settings and restrictions on selling minors’ data aligns with the FTC’s push in the Disney settlement.
Nationally, the FTC’s enforcement underscores a broader effort to hold companies accountable. Parents can use tools like Google’s Be Internet Awesome program, which teaches kids safe online habits, or the Family Online Safety Institute’s resources for families. In Southern Maryland, the Maryland State Police’s “Operation Safe Online Summer” initiative, launched in June 2025, targets digital exploitation and offers support for victims. Maryland CASA also provides a comprehensive guide to youth internet safety, equipping parents and guardians with strategies to foster positive online experiences.
The Disney case, while national, resonates locally as families engage with online media. By combining federal rulings with state laws and community resources, parents can better protect children from data misuse and online risks.
