FTC Says Disney Will Pay $10M to Settle COPPA Violations Over Videos

The Federal Trade Commission (FTC) said Disney will pay $10 million to settle allegations of COPPA violations, as Danny Bradbury reports for MalwareBytes. As reported, the Children’s Online Privacy Protection Act (COPPA) governs online data collection involving children under 13.

The agreement addresses the way Disney labeled child-directed content on YouTube, and the resulting collection and use of children’s personal data. Regulators concluded that improper labeling exposed young viewers to data practices restricted by law.

To help creators comply with COPPA, YouTube introduced a labeling system in 2019 requiring creators to designate content as made for kids or not, with stricter limits applying to child-directed videos. Disney operates a large network of YouTube channels tied to its entertainment brands and was required to apply these designations accurately at either the channel or individual video level.

According to the FTC, Disney labeled entire channels as not made for kids without reviewing videos individually, even when specific videos were directed to children. Regulators alleged that this approach allowed data collection and targeted advertising that COPPA prohibits.

The FTC cited internal YouTube actions reclassifying hundreds of Disney videos as child-directed, and pointed to similarities between content on channels labeled differently. The agency unanimously voted to refer the matter to the Department of Justice, citing concerns about parental trust.

The settlement reinforces regulatory expectations concerning compliance with child privacy rules in platform-based content distribution. Companies cannot rely on broad channel-level classifications where individual content may trigger statutory protections.

It also signals growing regulatory interest in age assurance technologies as a compliance alternative, while making clear that responsibility for accurate labeling remains with content owners.

Legal teams advising media, technology, and brand-driven companies should closely assess content-governance practices, platform policies, and evolving enforcement priorities related to children’s data.