The Walt Disney Company will pay $10 million to settle allegations that it violated federal children's privacy protections on YouTube. The U.S. Department of Justice announced the resolution on Tuesday, December 30, following allegations that Disney had improperly collected personal information from young viewers without their parents' consent.
Federal Privacy Law Violation Claims
The Children's Online Privacy Protection Act prohibits websites and companies from knowingly collecting, using, or disclosing personal information from children under 13 without notifying parents and obtaining explicit consent. A complaint filed in the U.S. District Court for the Central District of California accused Disney Worldwide Services Inc., Disney Entertainment Operations LLC, and associated entities of violating COPPA through “targeted advertising toward children on YouTube” and unlawfully collecting “children's information without parental notice and consent.”
“The Justice Department is firmly devoted to ensuring parents have a say in how their children's information is collected and used,” Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division said. “The Department will take swift action to root out any unlawful infringement on parents' rights to protect their children's privacy.”
The Walt Disney Company's Settlement Terms and Future Compliance
The Justice Department announced on December 30 that a federal court entered a stipulated order resolving the case with a $10 million civil penalty. Beyond the monetary settlement, the court order prohibits Disney from continuing operations that violate COPPA regulations.
Disney has reached a $10 million settlement with the Department of Justice regarding not designating YouTube videos “for kids”
Disney has reached a $10 million settlement with the Department of Justice regarding not designating YouTube videos "for kids" pic.twitter.com/NOCW2pxVaR
— LaughingPlace.com (@laughingplace) December 30, 2025
The Walt Disney Company must establish a compliance program to ensure that both the company and any organizations acting on its behalf adhere to COPPA requirements on YouTube going forward. This mandate addresses concerns about how Disney handles children's data through its massive YouTube presence.
Disney commands billions of views on YouTube within the United States alone, establishing it as one of the platform's most prominent media companies. Most YouTube channels generate revenue through advertising, though the YouTube Kids app specifically limits advertising and data collection on child-focused content.
Was your family affected by The Walt Disney Company's alleged violation of children's privacy laws? Share your story with Disney Fanatic in the comments.
