Disney to Pay $10 Million Over Children’s Privacy Violations on YouTube
Disney will pay $10 million to settle claims it illegally tracked kids on YouTube, marking one of the largest COPPA penalties ever.
Disney Settles Children’s Privacy Claims for $10 Million
San Francisco, CA — The Walt Disney Company has agreed to pay $10 million to resolve allegations that it illegally tracked children under 13 on YouTube, regulators confirmed Tuesday.
What Disney Is Accused Of
Federal investigators say Disney’s ad-tech partners placed persistent identifiers—cookies and mobile IDs—on kids’ browsers without first obtaining verifiable parental consent, a direct breach of the Children’s Online Privacy Protection Act (COPPA).
“Disney marketed its content as family-friendly while quietly monetizing kids’ data,” said Rebecca Slaughter, FTC Commissioner. “That contradiction ends today.”
The Numbers Behind the Deal
- $10 million civil penalty—among the largest COPPA settlements on record.
- 23 million views on affected Disney Junior and Disney Channel clips.
- 2 years of alleged data collection, ending in 2022.
Parents React
In Facebook groups and school pickups, the mood was equal parts relief and frustration. Marisol Park, a mother of two in Denver, summed it up: “My kids just wanted to sing along to Moana. I didn’t know a data broker was singing along too.”
What Happens Next
Under the consent decree, Disney must:
- Delete all data collected from viewers flagged as under 13.
- Audit third-party ad vendors every six months.
- Create a “kids-mode” landing page that blocks tracking pixels.
Shares of Disney closed down 0.9 % in after-hours trading, a modest dip analysts attribute to broader streaming concerns rather than the fine itself.
The Bigger Picture
The settlement lands amid a regulatory crackdown on Big Tech’s kid-centric ecosystems. YouTube paid $170 million in 2019; TikTok faces multiple state probes. Legal experts predict COPPA 2.0—an update stalled in Congress—could raise penalties to $50,000 per child per violation.
For now, the Magic Kingdom is writing a $10 million check and promising to treat children’s data like the crown jewels—not another revenue stream.