Credit: DisneyThe Walt Disney Company has paid out millions of dollars in a lawsuit settlement that botched children’s data that was made to be private, putting thousands of children and families at risk.
The Walt Disney Company Pays Out Millions After Mishandling Children’s Privacy Data
It’s the kind of news no parent wants to hear. The Walt Disney Company—an entertainment giant long associated with family trust—has been hit with a staggering $10 million civil penalty tied to how children’s data was handled on YouTube. For a brand that has built its reputation on creating safe, family-first experiences, this revelation feels like a gut punch.
But behind the shocking headline lies a deeper issue—the challenge of protecting children’s privacy in an increasingly digital-first world. With more kids spending hours on YouTube every day, the risks of mishandled data and targeted advertising continue to grow.
So what actually happened, and what does this mean for families moving forward? Let’s break it down.
What Just Happened With Disney and the FTC
The Federal Trade Commission (FTC) alleged that Disney failed to properly designate certain YouTube videos as “Made for Kids,” a requirement under the Children’s Online Privacy Protection Act (COPPA). This federal law requires parental consent before collecting personal data from children under 13.
According to the complaint, Disney uploaded hundreds of videos—from beloved films like Frozen, Coco, and Toy Story—onto channels marked “Not Made for Kids.” This allowed YouTube to collect data and serve targeted ads on child-directed content.
FTC Chairman Andrew Ferguson didn’t mince words, stating:
“Our order penalizes Disney’s abuse of parents’ trust, and, through a mandated video-review program, makes room for the future of protecting kids online — age assurance technology.”
As part of the settlement, Disney has agreed to change its practices by implementing an Audience Designation Program to correctly classify videos.
How Families Can Navigate This Online Shift
For parents, this settlement is a reminder: platforms that appear “kid-friendly” are not always risk-free. Here’s how families can better navigate:
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Check YouTube settings: Ensure restricted mode is enabled and double-check which accounts your children are using.
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Look for the “Made for Kids” tag: When browsing Disney or other channels, confirm whether videos are appropriately designated.
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Limit autoplay: Since comments and autoplay are disabled on “Made for Kids” videos, using those features may help flag when a video isn’t kid-directed.
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Use parental controls apps: Tools like YouTube Kids or third-party monitoring apps can help reduce risks.
These simple steps can make the difference between a safe streaming experience and one that quietly collects your child’s data.
Insider Insight: What Most Parents Don’t Realize
Here’s something few families know: Disney earns ad revenue directly from YouTube videos, whether through shared revenue or direct sales. That financial incentive means mislabeling child-directed content could have opened the door to more lucrative targeted advertising.
Additionally, the FTC complaint revealed that YouTube itself repeatedly had to re-designate Disney videos as “Made for Kids” as recently as 2022. Even after being warned in 2020, the pattern persisted—raising eyebrows about just how much oversight Disney was truly applying.
For families, this underscores the importance of not assuming trust simply because a brand is iconic.
Why This Matters to Fans and Families
This settlement is more than just a corporate penalty—it strikes at the heart of why families flock to Disney in the first place: trust.
For decades, Disney has positioned itself as a safe space for children, both on screen and in its theme parks. Parents rely on that promise. Yet this case shows how even family-first brands can stumble in the fast-moving digital world.
The stakes are high. In 2019, YouTube itself paid $170 million for mishandling children’s data. Now, Disney’s penalty reinforces how seriously regulators are taking online child privacy.
For families, this moment serves as a wake-up call: digital safety is not guaranteed—no matter the brand name attached.
Final Thoughts for Disney Fans
Disney insists it remains “committed to adhering to child privacy laws” and emphasizes that this settlement doesn’t involve Disney-owned digital platforms. Still, the lesson is clear: parents must stay vigilant, even when trusted names are involved.
As the FTC pushes for age assurance technology and new safeguards, one thing is certain—protecting kids online will remain an ongoing battle.