Disney to Pay $10 Million Fine for COPPA Violations Related to YouTube Data Collection
WASHINGTON, D.C. – Disney will pay $10 million to settle allegations from the Federal Trade Commission (FTC) that it enabled the unlawful collection of personal data from children under 13 through its YouTube channels. The settlement, announced today, resolves claims that disney violated the Children’s Online Privacy Protection Act (COPPA), which mandates parental notification and consent before collecting personal information from children under 13.
The FTC complaint alleges that Disney incorrectly tagged videos uploaded to YouTube as “Not Made for Kids” (NMFK) at the channel level, despite many being clearly directed at children. This mislabeling allowed Disney, through YouTube, to collect personal data from young viewers and utilize it for targeted advertising.YouTube itself previously alerted Disney in 2020 that over 300 Disney videos had been switched from NMFK to “Made for Kids” (MFK), including content featuring popular characters from The Incredibles, Coco, Toy Story, Frozen, and Mickey Mouse.
“The complaint says the mislabeling allowed Disney, through YouTube, to collect personal data from children under 13 viewing child-directed videos and use that data for targeted advertising to children,” the FTC stated.
Disney receives revenue from advertising placed with its videos on YouTube, and also from advertising disney directly sells.
in addition to the $10 million civil penalty, the settlement requires Disney to notify parents before collecting children’s personal information and to implement a program ensuring accurate video designations as “Made for Kids” to prevent future unlawful data collection. This follows a September 2024 FTC report revealing widespread surveillance of children and teens by video streaming and social media companies, with billions earned annually through data monetization.
Disney previously paid $170 million in 2020 to settle similar COPPA claims. A Disney spokesperson was not promptly available for comment.
