Disney’s brand has long been tied to childhood wonder, which makes its latest legal settlement uncomfortable and revealing. The Walt Disney Company has agreed to pay $10 million to settle claims that it failed to properly protect children’s privacy on YouTube.
What is the Settlement of Disney
The case stems from an investigation by the US Federal Trade Commission into how Disney content was handled on third-party platforms particularly YouTube. Regulators allege that some Disney videos, despite being clearly aimed at children were not labelled as child-directed.
This misclassification reportedly allowed targeted advertising to reach young viewers and enabled the collection of personal data without proper parental consent. The Department of Justice formalised the settlement through a federal court order and closing a probe that has been ongoing for years.
Why Children’s Privacy Laws Matter
The allegations fall under the Children’s Online Privacy Protection Act or COPPA is a law passed in 1998 to limit how companies collect and use data from children under 13. COPPA requires platforms and content creators to notify parents and obtain verifiable consent before gathering personal information.
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Regulators argue that when child-focused videos are not correctly designated, these safeguards break down, exposing children to tracking and targeted advertising they are legally meant to be shielded from.
Disney’s Response & Compliance Commitments
As part of the settlement, Disney has agreed to develop and implement a compliance programme designed to prevent similar violations in the future. According to the Justice Department, this programme is intended to ensure stricter oversight of how Disney content is classified and distributed on external platforms.
Officials stressed that the goal is not punishment alone, but long-term change. Disney has maintained that the settlement applies only to certain content distributed on YouTube and does not extend to its own digital platforms.
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A Wider Warning for the Industry
Beyond Disney, the case sends a broader signal to media companies operating in digital spaces. Children’s content is lucrative, but it comes with heightened responsibility. Regulators are increasingly willing to scrutinise how platforms and publishers handle young audiences when advertising and data collection are involved.
The settlement underscores a clear message brand reputation does not exempt companies from compliance and parents are expected to have a meaningful say in how their children’s data is used online.
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Disclaimer: This article is for informational purposes only and is based on publicly available regulatory statements and media reports.