Disney to Pay $10M for Illegally Tracking Underage Users on YouTube

Disney will pay a $10 million penalty to settle federal charges that it violated the Children’s Online Privacy Protection Act (COPPA). According to announcements from the Department of Justice and the FTC, the company’s failure to properly label its YouTube content allowed Google to unlawfully collect data from children under 13 and serve them targeted ads.

• Failure to flag: The FTC complaint alleges that Disney sidestepped YouTube’s content rules by not flagging its videos as "Made for Kids." That failure, which the complaint says persisted even after YouTube had re-categorized over 300 clips from movies like Frozen and Encanto, effectively opened the door for Google to unlawfully serve targeted ads to young viewers.
• Not our platform: Disney deflected responsibility, emphasizing in a statement to Deadline that the issue was limited to a third-party service. "This settlement does not involve Disney owned and operated digital platforms but rather is limited to the distribution of some of our content on YouTube’s platform," the company said.

While the $10 million fine is a slap on the wrist for a company of Disney's size, the settlement sends a clear warning that content creators—not just platform owners—are on the hook for protecting children's data online. The action against Disney is part of a broader regulatory focus on children's privacy. In 2023, Microsoft paid a $20 million fine for COPPA violations on its Xbox platform, and the FTC has also recommended a lawsuit against TikTok for similar alleged violations.