Published
September 28, 2025
Updated
May 27, 2026
There is no consumer claim form here — this is an FTC enforcement action — but the $10 million penalty forces Disney to relabel its child-directed YouTube videos and rebuild its COPPA compliance.
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.
Status
Proposed Stipulated Order · FTC Settled
announced September 2, 2025 · awaiting court approval
Civil Penalty
$10,000,000
paid to the U.S. Treasury, not to individual consumers
Type
Government Enforcement Action
Federal Trade Commission · not a class action, no claim form, no consumer payouts
Alleged Violation
COPPA Rule (Audience Designation on YouTube)
child-directed videos allegedly mislabeled as Not Made for Kids, enabling data collection from under-13s without parental consent
What Changes
Mandatory Audience-Designation Review Program
Disney must implement COPPA notice and verifiable parental consent procedures and long-term compliance reporting
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.Free settlement alerts
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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.Other Disney Class Actions & Enforcement Matters
This FTC COPPA case is one of several Disney-related cases consumers track. The most commonly confused with it are:• Disneyland Facial Recognition Class Action (Duffield v. Disney, S.D.N.Y., May 2026). A new private class action complaint alleging Disney began collecting facial recognition biometric data from guests at the Disneyland and Disney California Adventure entrances on or around April 28, 2026 without adequate consent, including from children. Allegations only; no settlement, no claim form. Directly relevant to this COPPA case because the facial recognition complaint argues that minors cannot meaningfully consent to biometric collection — the same theme COPPA polices for under-13 data. Read the Disney facial recognition class action complaint page.
• Disney ESPN $50M YouTube TV & DirecTV Stream Antitrust Settlement. A class action alleging Disney used its ownership of ESPN and Hulu to inflate streaming live TV prices for YouTube TV and DirecTV Stream subscribers. Court preliminarily approved the deal on March 31, 2026; claim form opens July 7, 2026. Read the Disney ESPN YouTube TV & DirecTV Stream $50M settlement page.
• Disney & California AG — $2.75M CCPA Privacy Settlement. California Attorney General Rob Bonta fined Disney $2.75 million for ignoring opt-out requests on Disney+, Hulu, and ESPN+. Like this FTC matter, it’s a government enforcement action with no consumer claim form. Read the Disney CCPA settlement breakdown.
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Sources
• FTC Press Release• FTC Case Page
• Reuters coverage
• FTC Consumer Alert
No Claim Form Available
| 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 |
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