Disney Fined for COPPA Violations on YouTube

Disney has agreed to pay a $10 million settlement following allegations that it violated the Children’s Online Privacy Protection Act (COPPA) by failing to properly label thousands of its YouTube videos as directed at children. This mislabeling allowed Disney and its partners to collect personal data from children under 13 and serve them targeted advertisements without obtaining parental consent, actions that are explicitly prohibited under COPPA. The Federal Trade Commission (FTC) initially investigated the case before referring it to the Department of Justice (DoJ), which announced the settlement and emphasized the importance of protecting children’s privacy online.

The settlement highlights the ongoing regulatory scrutiny of large content providers on platforms like YouTube, especially regarding compliance with child privacy laws. YouTube had previously updated its policies to require content creators to label videos as "made for kids" or not, following its own record $170 million COPPA settlement in 2019. The Disney case underscores the legal and financial risks for companies that fail to adhere to these requirements, reinforcing the government’s commitment to enforcing parental rights and safeguarding children’s data online.