In a landmark decision, Disney has been fined $10 million by the Federal Trade Commission (FTC) for violating the Children’s Online Privacy Protection Act (COPPA) by improperly collecting personal information from children under 13 on YouTube. The ruling also requires the entertainment giant to implement stricter safeguards for children’s content moving forward.
The FTC settlement stems from Disney’s mislabeling of popular videos, including Mickey Mouse, Frozen, Toy Story, and Cars as “not made for kids,” despite their clear appeal to young audiences. As a result, children were exposed to personalized advertising and data collection without parental consent, a direct violation of federal law.
According to the FTC, Disney had been informed in 2020 that many of its videos required reclassification but failed to update its policies. Instead, the company continued to categorize entire channels as not for children without reviewing individual videos, allowing targeted ads and data collection mechanisms to reach minors.
