Disney pays 10 million for YouTube privacy violations

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Disney has learned an expensive lesson in YouTube housekeeping: if your video features a talking snowman or a family of superheroes, the government expects you to admit it’s for kids.

This week, the US Department of Justice announced that Disney will pay $10 million in civil penalties to settle allegations that it violated federal children’s privacy laws by mislabeling some of its YouTube content.

The case targets Disney Worldwide Services and Disney Entertainment Operations, which the DOJ accused of failing to properly mark certain videos as “made for kids” on YouTube.

That label matters a lot. Without it, Disney and its advertising partners were allegedly able to serve targeted ads and collect personal data from viewers under 13, which is strictly prohibited without parental consent.

At the center of the case is the Children’s Online Privacy Protection Act, better known as COPPA.

Passed in 1998, back when “streaming” meant a garden hose, COPPA requires companies to get parents’ permission before collecting personal information from kids online.

The DOJ says Disney’s mislabeling dodged those rules.

“The Justice Department is firmly devoted to ensuring parents have a say,” said Assistant Attorney General Brett A.

Shumate made a statement that strongly implies the government does not enjoy surprise targeted ads aimed at elementary schoolers.

According to the complaint, the improperly labeled videos appeared across several Disney-owned channels, including Pixar, Disney+, and Disney Animation Studios.

The content featured characters from hits like The Incredibles, Frozen, Coco, and Tangled, movies famously beloved by adults who absolutely don’t own Elsa pajamas.

Disney told Axios that the settlement doesn’t involve Disney-run platforms directly and instead focuses on how some of its content was distributed on YouTube.

The irony is hard to miss. After YouTube paid a $170 million settlement to the Federal Trade Commission in 2019 over COPPA violations, the platform rolled out mandatory “made for kids” labels.

Those labels disable personalized ads, comments, and data collection, all the things marketers love, and regulators hate.

This case is one of the first times a content creator, rather than YouTube itself, has settled with the DOJ over COPPA.

Beyond the $10 million fine, Disney must now run an ongoing review program to make sure its future uploads follow the rules.