Federal authorities announced Tuesday that The Walt Disney Company will pay $10 million after allegations that the entertainment giant illegally collected personal information from children watching YouTube content. The U.S. Department of Justice released its statement on December 30, confirming the settlement that resolves claims of violating children’s privacy laws.
COPPA Allegations Against The Walt Disney Company
Federal regulations under the Children’s Online Privacy Protection Act ban websites and companies from knowingly collecting, using, or disclosing personal information from children under 13 without providing parental notification and securing explicit consent. Court documents filed in the U.S. District Court for the Central District of California alleged Disney Worldwide Services Inc., Disney Entertainment Operations LLC, and affiliated entities violated these protections by “targeted advertising toward children on YouTube” and “unlawfully collected 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,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”
Federal Court Orders Payment and Compliance
A federal court entered a stipulated order on December 30, requiring Disney to pay a $10 million civil penalty, resolving the case. The settlement extends beyond financial consequences, mandating The Walt Disney Company to cease any operations violating 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 court orders require Disney to implement a comprehensive program that guarantees compliance with COPPA across its YouTube operations. This program must cover not only Disney’s direct activities but also any third parties acting on the company’s behalf.
The Walt Disney Company maintains one of YouTube’s largest presences, accumulating billions of U.S. views that establish it among the platform’s dominant media companies. Advertising revenue drives the majority of YouTube channel profits, although YouTube Kids attempts to restrict advertisements and data collection on children’s programming.
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