Disney to pay $10 million fine in FTC case for mislabeling videos on its YouTube channels Mike Snider, USA TODAY September 3, 2025 at 12:33 AM Disney has agreed to pay $10 million as part of its settlement with the Federal Trade Commission over charges it mislabeled some videos posted to YouTube, wh...
- - Disney to pay $10 million fine in FTC case for mislabeling videos on its YouTube channels
Mike Snider, USA TODAY September 3, 2025 at 12:33 AM
Disney has agreed to pay $10 million as part of its settlement with the Federal Trade Commission over charges it mislabeled some videos posted to YouTube, which allowed the collection of personal data from children under the age of 13.
Disney failed to properly label some videos that it uploaded to YouTube as "Made for Kids," which resulted in the collection of personal data from kids under 13 and the use of that data for targeted advertising to children, according to a news release issued by the FTC on Tuesday, Sept. 2.
Online sites and services with content meant for children under the age of 13 are required to let parents know what personal information is collected and get their consent, under the Children's Online Privacy Protection Rule, passed by Congress in 1998 and by the FTC in 2012.
Disney gets revenue from ads it places on its videos and from YouTube, which pays Disney for ads it inserts on Disney videos, the FTC said. The mislabeling also exposed kids to age-inappropriate YouTube features like autoplay to videos not "Made for Kids," the agency said.
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"This case underscores the FTC's commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children's personal information online," said FTC chairman Andrew Ferguson in a statement. "Our order penalizes Disney's abuse of parents' trust, and, through a mandated video-review program, makes room for the future of protecting kids online – age assurance technology."
After being told by YouTube in mid-2020 that YouTube had changed designations on more than 300 Disney videos from "Not Made for Kids" (NMFK) to "Made for Kids" (MFK), Disney "continued to fail to properly designate individual videos," the FTC said.
YouTube channels where videos were initially improperly designated included the Disney channel, the Disney Descendants channel, the Disney Family channel, the Disney Games channel, the Disney Junior channel, the Disney Music channel, the Disney XD channel, the Mickey Mouse channel, the Pixar Cars channel, the Radio Disney channel, and the Nat Geo Kids channel, according to the complaint filed Sept. 2 with by the FTC and Justice Department.
Disney on FTC settlement for YouTube videos: Child safety 'at the heart of what we do'
Disney, in a statement the company sent to USA TODAY, noted that the settlement is limited to Disney content on YouTube and not Disney-owned and operated digital sites.
"Supporting the well-being and safety of kids and families is at the heart of what we do," The Walt Disney Company said in a statement shared with USA TODAY. "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."
Under the settlement, Disney will also implement a program to review whether videos posted to YouTube should be designated as "Made for Kids."
However, Disney is allowed to phase out its monitoring program if YouTube implements "age assurance technology that can ensure COPPA compliance," Ferguson said in a separate statement.
YouTube is currently testing artificial intelligence-driven technology to determine whether a user is over or under 18, the company said in July. YouTube has not responded to a request for comment about age-verification testing for those under the age of 13.
Cupcakes are decorated with Disney princesses at the Princess Ball at the Bryant Conference Center in Tuscaloosa, Alabama on Feb 1, 2025.
YouTube began requiring content creators to designate videos it uploads as NMFK or MFK to comply with COPPA as part of a 2019 settlement with the FTC over its own rule violations. YouTube also paid a $170 million fine as part of the settlement.
"Anytime the FTC takes an action on behalf of kids against companies that violate the law, that is a good thing," said Daniel Weiss, chief advocacy officer with Common Sense Media, a non-profit organization that has proposed making COPPA stronger to bolster safeguards for children online.
"Of course, companies also weigh the costs and benefits of these penalties – it's not clear that this penalty will be a meaningful deterrent for Disney or other similarly sized actors," Weiss told USA TODAY in a statement. "Nonetheless, we're glad to see that the cop on the beat took a positive step on behalf of kids today."Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @mikegsnider.bsky.social & @mikesnider & [email protected]
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This article originally appeared on USA TODAY: Disney pays $10 million over illegal collection of kids' YouTube data
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