Disney to Pay $10 Million Penalty for Alleged Illegal Targeting of Children
Even Disney’s “magic” has legal boundaries — and they can be expensive.
The Justice Department announced Tuesday that it has reached a settlement with Disney over alleged violations of federal children’s privacy law.
Under a federal court order, Disney Worldwide Services Inc. and Disney Entertainment Operations LLC — collectively referred to as “Disney” — will pay $10 million in civil penalties.
The case centers on alleged violations of the Children’s Online Privacy Protection Act (COPPA). According to the DOJ, Disney collected data from children watching popular YouTube videos without first notifying parents or obtaining the necessary consent.
A DOJ complaint filed in a California federal court claims Disney failed to label certain YouTube content as directed toward children. This oversight allegedly allowed the company to gather data from young viewers and serve targeted ads — a potential violation of federal law.
The reach of Disney’s content makes the issue especially significant. The company’s YouTube videos attract billions of views in the U.S., meaning a large number of children and families could have been affected, the DOJ said.
“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, head of the DOJ’s Civil Division. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”
Beyond the $10 million fine, the settlement imposes strict rules on Disney’s YouTube operations. The company is prohibited from running content in ways that violate children’s privacy laws and must implement a compliance program to ensure future adherence to COPPA.
For a company built on family-friendly entertainment, the settlement is a stark reminder: even the most powerful media empires must follow the rules. Disney’s global reach comes with the responsibility to protect young audiences, not sidestep regulations for convenience or profit.
Regulators’ message is clear: when it comes to children’s privacy, Disney’s “magic” has clear limits.
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