Court Approves Disney’s $10 Million FTC Settlement Resolving COPPA Enforcement Action
A federal court approved Disney’s $10 million settlement with the FTC over alleged COPPA violations related to children’s online privacy.Summary
On December 31, 2025, a federal judge approved a $10 million settlement between the Federal Trade Commission (FTC) and Disney Worldwide Services, Inc. and Disney Entertainment Operations LLC regarding alleged violations of the Children’s Online Privacy Protection Act (COPPA). The FTC complaint stated that Disney failed to properly label some Disney YouTube videos as “Made for Kids” (MFK), which disables certain data collection and targeted advertising. Disney also allegedly failed to provide adequate notice to parents about its data collection practices and collected personal information from children under 13 without verifiable parental consent, enabling targeted advertising on videos directed towards children.
The settlement mandates that Disney pay a $10 million civil penalty and fully comply with COPPA regulations, including notifying parents and obtaining verifiable consent before collecting data from children under 13. Additionally, Disney is required to implement a program to review its YouTube videos to determine appropriate MFK designation, unless YouTube adopts age assurance technologies or removes the MFK labeling system.
(Source：National Law Review)