Disney’s $10M Fine: New Wake-Up Call for Child Privacy Rights

A Major Fine for the Magic Kingdom

The world of digital entertainment has a new set of rules to follow. On Tuesday, December 30, 2025, the US Department of Justice made a big announcement. The Walt Disney Company has agreed to pay a $10 million civil penalty. This massive fine is part of a settlement to fix claims that the company broke child privacy laws.

Specifically, the government says Disney failed to protect young viewers on YouTube. For a company that prides itself on family fun, this is a serious legal blow. This move shows that the US government is getting much tougher on how big firms handle kids’ data.

Breaking the COPPA Rules on YouTube

The legal case centers on a very important law called COPPA. This stands for the Children’s Online Privacy Protection Act. This law has made to give parents control over what data has taken from their kids. Under COPPA, websites and apps cannot take personal info from kids under 13 without a parent’s “yes.”

The Federal Trade Commission (FTC) alleged that Disney ignored these rules for years. They say Disney did not properly label its videos on the popular video platform. Consequently, data has taken from millions of children without any warning to their moms and dads.

The Problem with “Made for Kids” Labels

The main issue has how Disney uploaded its videos to YouTube. Since 2019, YouTube has required creators to mark if a video is “Made for Kids.” When a video has this label, YouTube stops taking data for targeted ads. However, the government found that Disney was “mislabeling” hundreds of videos.

Some videos for hits like Frozen, Toy Story, and The Incredibles have not marked correctly. This meant that the “child safety” features have not turned on. Instead, Disney was able to show “targeted ads” to kids based on their habits. This practice is a direct violation of US law and parent trust.

Targeted Ads and Personal Data

Why does the label matter so much to the government? When a video has not marked as “Made for Kids,” trackers start working in the background. These trackers collect “persistent identifiers” like IP addresses and device IDs. Advertisers use this info to follow kids around the web and show them specific ads. This has called targeted advertising, and it has strictly banned for young children. The FTC found that Disney and its partners collected this data without asking parents first. This allowed the company to make more money from ads at the expense of child privacy.

A Program for Future Safety

The $10 million fine is just one part of the new deal. The court has also ordered Disney to start a new safety program. This program will review every single video Disney puts on YouTube from now on. The company must prove that it is labeling its content the right way.

Furthermore, Disney must provide regular reports to the government to show they have following the law. If they fail to do this, they could face even bigger fines in the future. This “monitoring” phase has meant to ensure that the “Magic Kingdom” stays safe for every little fan.

Impact on Global Media Giants

This settlement is a clear warning to other big media companies. Disney is not the first giant to pay for breaking these rules. In 2019, Google paid $170 million for similar issues on YouTube. More recently, Epic Games paid over $500 million for privacy and “dark pattern” concerns.

By targeting Disney, the US government is showing that no company is too big to follow the law. It sends a message that “ignoring” child safety labels is a costly mistake. Other companies like Netflix and Amazon are likely checking their own settings right now to avoid a similar fate.

Billions of Views and High Stakes

The scale of this privacy breach is truly massive. Disney’s YouTube channels have more than 6.5 million subscribers combined. Their most popular videos have billions of views from families across the globe. This means that a small “mistake” in labeling can impact millions of people very quickly.

The government argued that the “popularity” of Disney content made the breach even worse. Because so many kids watch these videos, the risk to their privacy was extremely high. The $10 million fine is meant to show that the “price of doing business” must include safety.

Parents Regain Control of Data

Assistant Attorney General Brett Shumate spoke out about the importance of this case. He stated that parents must have a say in how their children’s info is used. The goal of the DOJ is to “root out” any company that breaks these rights. For many years, parents felt like they had no power against big tech firms.

This settlement helps shift that power back to the families. It forces Disney to be honest about who is watching its videos. Now, moms and dads can feel a bit more secure when their kids hit “play” on a Disney clip.

Disney’s Stance on the Case

While Disney has agreed to pay the money, they have not admitted to any “wrongdoing.” In past statements, the company has said the issue was about third-party platforms. They argued that their own apps, like Disney+, already follow the rules perfectly. They claimed the trouble was specific to how they shared clips on YouTube.

However, the government did not accept this excuse. They believe that content creators are responsible for their labels, no matter where they post. Even though Disney is paying the fine, they still want to protect their brand’s image as a “family-first” company.

A New Standard for Kids Online Disney

In conclusion, the Disney settlement is a major win for child privacy in the US. By paying $10 million, the company is finally being held accountable for its YouTube habits. The new review program will set a high bar for how all kids’ content is handled online. Disney

As we enter 2026, the world of “targeted ads” for minors is shrinking fast. Parents can expect to see more “Made for Kids” labels and fewer sneaky trackers. The “Mouse House” has a big job ahead to regain full trust. We will see if these new rules lead to a safer digital world for everyone. Disney

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