03.09.2025
2 min
550
Walt Disney has agreed to pay $10 million to settle an FTC complaint alleging that some of its children’s content on YouTube was improperly labeled, allowing it to collect personal information from children under 13 without parental notice or consent.
The U.S. Federal Trade Commission said Disney failed to label certain videos as “made for kids” when it uploaded them to the platform. That allowed YouTube to collect and use data from viewers under 13 to target viewers. FTC Chairman Andrew Ferguson called the settlement “a big win for parents.”
The complaint alleges violations of COPPA, a law that requires services aimed at children to notify parents of what data is being collected and obtain verified parental consent before collection.
The draft injunction requires Disney to implement an audience labeling program to ensure that videos are correctly identified as “made for kids” when appropriate. The company stressed that the settlement does not apply to its own digital platforms — only the distribution of some content on YouTube — and emphasized its commitment to the highest standards of compliance with children’s privacy laws.
COPPA (Children’s Online Privacy Protection Rule) has been in effect in the United States since 2000 and regulates the collection of data from children under 13 in apps, websites, and online services. Violations most often arise from incorrect content classification and integrated advertising/analytics tools that automatically create user profiles. In recent years, regulators have increased their focus on platforms and rights holders that distribute children’s content on third-party platforms, requiring technical and procedural safeguards for correct labeling and consent.
Disney’s case shows that even large rights holders risk penalties if audience labeling and parental consent processes don’t work flawlessly across all distribution channels. To avoid COPPA claims, companies need to centralize “made for kids” policies, conduct regular metadata audits, and monitor how third-party platforms handle underage user data.
