The Walt Disney Company has agreed to pay $10 million to settle a lawsuit related to children’s data privacy violations. The case was brought by U.S. government authorities. It accused Disney of allowing the collection of personal data from children without proper consent. The settlement was approved by a federal court in late December 2025.
The lawsuit was based on violations of the Children’s Online Privacy Protection Act, also known as COPPA. This law protects the online personal information of children under the age of 13. Regulators said Disney failed to follow these rules. The issue mainly involved how children’s content was handled online.
According to the government, Disney published some video content that was meant for children. However, the videos were not properly labeled as child-directed content. Because of this, the platform treated young viewers as general users. This allowed the collection of data that should have been restricted.
As a result, personal data such as cookies and device identifiers were collected from children. This data was then used for targeted advertising. Under COPPA, this is not allowed unless parents are properly informed and give consent. Regulators said this practice violated federal privacy laws.
The case was handled by the U.S. Department of Justice after a referral from the Federal Trade Commission. Officials said companies creating content for children must clearly identify it. They also must make sure children’s data is protected at all times. Failure to do so can lead to serious penalties.
As part of the settlement, Disney will pay the $10 million civil penalty. The company is also required to improve how it reviews and labels its online video content. New systems must be put in place to correctly identify content made for children. This is meant to prevent future violations.
Government officials clarified that the case only involves Disney’s video content on third-party platforms. It does not apply to Disney’s own websites, mobile apps, or streaming services. The settlement is limited to the specific practices mentioned in the lawsuit. No other Disney services were accused.
Disney did not admit any wrongdoing as part of the agreement. Like many civil settlements, the case was resolved without a trial. Regulators said the action sends a strong message about protecting children online. The case highlights the importance of strict compliance with children’s data privacy laws.
Stay alert, and keep your security measures updated!
Source: Follow cybersecurity88 on X and LinkedIn for the latest cybersecurity news
