Disney to Pay $10 Million Over Children’s Data Privacy Violations

In a landmark settlement announced on 2 September 2025, The Walt Disney Company has agreed to pay a $10 million civil penalty to resolve allegations by the United States Department of Justice that its subsidiaries violated federal law by collecting personal data from children without parental consent. The suit, filed as Case No. 2:25-cv-08223 in the U.S.

District Court for the Central District of California, stems from Disney’s use of YouTube channels to distribute child-directed video content where targeted advertising and data-harvesting features remained active, contravening COPPA and Section 5(a) of the Federal Trade Commission Act. According to the complaint, Disney Worldwide Services, Inc. and Disney Entertainment Operations LLC operated more than 1,250 YouTube channels that streamed videos aimed at viewers under age 13.

The filing notes Disney’s mislabelling of content as Not Made for Kids at channel level, enabling persistent identifiers and personalised ads on child-directed material. Disney agreed to implement compliance measures, including enhanced audit procedures and parental-consent verification, with the $10 million penalty payable to the U.S. Treasury and described as one of the largest COPPA penalties. Regulators emphasise that major digital providers must adhere to federal privacy protections for children or face enforcement action.