Disney Hit with $10 Million Fine Over Child Data Collection on YouTube
The Walt Disney Company received a $10 million fine from the U.S. Federal Trade Commission (FTC) because of its current legal issues. The penalty results from Disney facing accusations about its inadequate protection of children’s privacy on YouTube which led to their data exposure for targeted advertising.
FTC Accusations and COPPA Violations
At the heart of the controversy is Disney’s alleged failure to classify hundreds of its videos as “Made for Kids.”This classification is a legal requirement under the Children’s Online Privacy Protection Act (COPPA), which prohibits companies from collecting personal information from children under 13 without parental consent.
The FTC found that the violation extended to more than 300 popular Disney videos, including hits such as The Incredibles, Toy Story, Coco, Tangled, and Frozen. Because of this omission, children’s personal data was collected and used to serve them targeted ads.
Disney gained revenue from these practices through YouTube ad revenue sharing and its own advertising sales which connected to the content.
FTC’s Strong Response
FTC Chairman Andrew Ferguson condemned Disney’s actions, stating:
“Our order penalizes Disney’s abuse of parents’ trust and, through a mandatory video review program, opens the door to the future of online child protection — age assurance technology.”
The regulatory body shows its dedication to enforce major corporations for their duty to protect children during their online activities through this statement.
“The truth is out there.”
Fox Mulder (David Duchovny), The X-Files
Disney’s Defense
Disney issued a statement which defended its operations while maintaining its dedication to protecting children since its founding.
“Supporting the well-being and safety of children and families is at the heart of what we do. This settlement does not involve Disney-owned and operated digital platforms, but is limited to the distribution of some of our content on YouTube. Disney has a long tradition of adhering to the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools necessary to continue being leaders in this area.”
A Growing Concern for Digital Platforms
Disney maintains its reputation as a protector of children through this situation yet it fails to meet digital privacy requirements. It also reflects the increasing challenges companies face as children consume more content online than ever before.
With streaming platforms and social media becoming dominant sources of entertainment, the risk of data misuse grows alongside. The FTC’s decision sends a clear warning not only to Disney but to all major entertainment corporations: child privacy violations will not be tolerated.
Why This Matters
The fine serves as a warning to parents about the concealed dangers which digital entertainment systems present to children. Children who watch Disney content are exposed to advertising methods that use their personal information despite the fact that they watch content from trusted brands.
The case serves as a warning to businesses about the legal consequences and damage to reputation which results from non-compliance with child protection regulations. With regulators becoming increasingly vigilant, entertainment giants must ensure stricter monitoring of their content distribution across third-party platforms.
Read More Article: 🔥 Best New Game Releases for Console and PC (2025 Edition)
