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Walt Disney has agreed to pay a $10 million civil penalty to settle allegations that it violated U.S. child privacy laws through videos uploaded to YouTube, according to a statement released by the U.S. Department of Justice. The settlement resolves claims that certain Disney-owned entities failed to properly comply with the Children’s Online Privacy Protection Rule (COPPA), a federal law designed to protect the personal data of children under the age of 13.
The Department of Justice alleged that Disney Worldwide Services and Disney Entertainment Operations did not correctly label some of their YouTube videos as “Made for Kids.” As a result, personal data from children younger than 13 was allegedly collected and used for targeted advertising purposes without meeting the strict consent and disclosure requirements mandated by COPPA. The complaint stated that this mislabeling allowed Disney and third parties acting on its behalf to gather sensitive information from young viewers.
The settlement, which finalizes an agreement first announced in September, also requires Disney to establish and maintain a comprehensive compliance program. This program is intended to ensure that future content uploaded to YouTube and other platforms adheres fully to child online privacy laws. According to the DOJ, the measures will focus on proper content classification, employee training, and ongoing monitoring to prevent similar violations.
COPPA requires websites, apps, and online services directed at children under 13 to clearly notify parents about what personal information is collected and how it is used. It also mandates that companies obtain verifiable parental consent before collecting, using, or sharing that data. Regulators have increasingly emphasized enforcement of these rules as children’s digital consumption continues to grow.
“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” said Assistant Attorney General Brett Shumate of the DOJ’s Civil Division. The case was originally referred to the Department of Justice by the Federal Trade Commission. Disney did not immediately respond to requests for comment on the settlement.
