Disney to Pay $10 Million in FTC Children's Privacy Settlement
By Steve Levine
Image Credit: Unsplash | Published: Sept 28, 2025
Status: Proposed Stipulated Order, Civil Penalty
Payout Award: None to consumers (civil penalty to U.S. Treasury)
Proof required: Not applicable
What Is the Disney FTC Case About?
The FTC announced that Disney agreed to pay a $10 million civil penalty to resolve allegations that certain Disney-uploaded YouTube videos were not properly designated as made for kids, facilitating the collection of personal data from children under 13 without parental consent required by the Children's Online Privacy Protection Rule (COPPA). The stipulated order also requires new compliance measures.What Is COPPA?
The Children's Online Privacy Protection Act (COPPA) is a federal law that protects the privacy of children under 13 years old. It requires websites, apps, and online services directed to kids to get parental consent before collecting personal information like names, emails, geolocation data, or browsing habits. The FTC enforces COPPA and can fine companies that violate the rule.Why Did the FTC Fine Disney?
The FTC says Disney mislabeled child-directed YouTube videos as “Not Made for Kids.” This caused YouTube to collect children's data and show personalized ads without parental consent, which is a violation of COPPA. The $10 million penalty is meant to enforce compliance and prevent future violations.Did Disney Collect Children's Personal Data?
According to the FTC, mislabeled videos enabled YouTube's systems to collect data such as viewing history, device identifiers, and potentially location data from children under 13. This information was allegedly used for targeted advertising on videos that should have been flagged as child-directed.What Happens to the $10 Million Disney Paid?
The $10 million is a civil penalty that goes to the U.S. Treasury. It is not distributed to families or children who viewed the videos. Unlike some FTC settlements that include consumer refunds, this case provides no direct compensation to viewers.Will Disney Refund Parents or Viewers?
No. There is no consumer refund program in this case. The penalty is strictly a government fine paid to the Treasury. Parents or viewers cannot file a claim for money.What Changes Must Disney Make After the Settlement?
Disney must create a review program to correctly label each video it uploads to YouTube. All content that is child-directed must be marked “Made for Kids.” Disney is also required to comply with COPPA notice and parental consent rules, maintain compliance records, and allow FTC monitoring.Which Disney Videos Were Affected?
The FTC complaint mentions videos tied to Frozen, Encanto, Moana, Cars, Tangled, Ratatouille, Toy Story, Inside Out, Finding Dory, The Incredibles, Coco, and Mickey Mouse. These videos should have been labeled for kids but were marked incorrectly.Is This the First Time the FTC Penalized a Content Creator?
Yes. While YouTube itself paid $170 million in 2019 for COPPA violations, this case marks the first time the FTC held a content creator like Disney responsible for mislabeling and compliance failures on YouTube.How Does This Compare to Other COPPA Settlements?
Disney's $10 million fine is smaller than other recent COPPA cases. Epic Games paid $275 million in 2022, Amazon paid $25 million in 2023, and Google and YouTube paid $170 million in 2019. Disney's penalty reflects its role as a creator rather than a platform, but it sets an important precedent.What Should Parents Know?
Parents should know this case highlights the importance of how kids' videos are labeled online. Even trusted brands like Disney can face penalties if videos are mislabeled. Parents should monitor what their children watch on YouTube and check whether videos are marked as “Made for Kids.”Is There a Settlement Fund for Consumers?
No. This is not a consumer restitution settlement. The $10 million is a civil penalty paid to the U.S. Treasury. There is no claims website and no refunds available to viewers.How Do I Qualify For a Payout?
There is no payout to consumers in this matter. Because it is a civil penalty case, you cannot file a claim for money.How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:What Compliance Changes Did Disney Agree To?
Under the proposed order, Disney must implement an audience designation program for YouTube uploads, follow COPPA's notice and verifiable parental consent requirements, and maintain ongoing compliance and reporting. These obligations are designed to prevent data collection from children without parental permission.Do I Need To File a Claim?
No. There is no claim form. If you see websites promising refunds tied to this case, verify with the FTC's official pages before sharing any personal information.What Are the Important Dates?
• FTC announcement and filings: September 2, 2025
• FTC case page update: September 5, 2025
• Court approval: Pending (stipulated order submitted)
Which Videos Were Flagged?
According to the FTC, examples included content related to The Incredibles, Coco, Toy Story, Frozen, and Mickey Mouse. The issue centered on how videos were designated for kid audiences on YouTube.Bottom Line
This is an enforcement action about children's privacy and platform designations, not a consumer payout. Expect compliance changes on future kid-directed uploads.How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:Sources
• FTC Press Release• FTC Case Page
• Reuters coverage
• FTC Consumer Alert
No Claim Form Available
Filing Class Action Settlement Claims
Please submit only truthful information. False claims can be rejected and may carry penalties. This article covers an FTC civil penalty case with no consumer claim form. OpenClassActions.com is a consumer news site and is not a settlement administrator or a law firm.
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Submit Claim| Settlement Summary | |
| Status | Proposed Stipulated Order (awaiting court approval) |
|---|---|
| Claim Form Deadline | None (no consumer claims) |
| Total Amount | $10,000,000 civil penalty (paid to U.S. Treasury) |
| Category | Children's Privacy, COPPA |
| Estimated Payout per Person | Not applicable |
| Case Number | TBD (stipulated order and complaint filed Sept 2, 2025) |
| Case Title | United States (FTC) v. Disney Worldwide Services, Inc., et al. (filings Sept 2, 2025) |
| Court | U.S. District Court (California federal court) |
| Key Documents | FTC Case Page | Press Release |