According to a court filing on Tuesday, regulators accused Disney of failing to properly label certain kid-directed videos when they were uploaded to YouTube. The misclassification, the complaint said, enabled the company—through YouTube’s advertising system—to gather data from young viewers and use it for targeted advertising, a direct violation of the Children’s Online Privacy Protection Rule (COPPA).
The COPPA regulation requires platforms, websites, and apps directed at children to clearly inform parents about the information they collect and to obtain verifiable parental consent before such data is used. The FTC argued that Disney’s lapses undermined these safeguards, exposing minors to privacy risks.
As part of the proposed settlement, Disney must introduce an audience designation program to ensure that its content is correctly flagged as “made for kids” where applicable. While acknowledging the settlement, Disney stressed that the case did not involve its own digital platforms but only content distributed via YouTube.
“Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space,” a company spokesperson said.
The agreement marks another in a string of FTC enforcement actions targeting major content distributors and digital platforms over children’s online privacy, underscoring regulators’ increasing scrutiny of how companies handle young audiences in the digital era.