Disney to Pay $10 Million Over Alleged Child Privacy Law Breaches

US Federal Trade Commission and Disney Reach Settlement Over Children’s Data Collection

A federal court has approved a settlement between the US Federal Trade Commission (FTC) and The Walt Disney Company, requiring the entertainment giant to pay $10 million to resolve allegations of unlawful data collection from children. The Department of Justice announced the approval on Tuesday.

As part of the agreement, Disney will operate its YouTube channel in accordance with data-protection rules and establish a programme to ensure future compliance. The settlement stems from claims made by the FTC that Disney collected children’s personal data without parental consent through its videos on YouTube.

The allegations centered around Disney’s designation of over 300 YouTube videos as not being aimed at children, despite these videos containing content intended for young audiences. Under the Children’s Online Privacy Protection Rule, companies in the US are prohibited from collecting data from children below 13 without parental notification.

Other major companies, including Google and Microsoft, have previously paid settlements under this rule. The Justice Department has stated its commitment to protecting parents’ rights to control their children’s information collection and use.

The Walt Disney Company is one of the world’s largest entertainment companies, with revenue for the fiscal year 2025 reaching $94.4 billion.

Source: Al Jazeera