United States of America: Federal Trade Commission filed lawsuit against Disney over alleged violations of Children's Online Privacy Protection Rule

On 2 September 2025, the Federal Trade Commission (FTC) filed a lawsuit against Disney, alleging violations of Section 5(a) of the Federal Trade Commission Act and the FTC’s Children’s Online Privacy Protection Rule (COPPA). The complaint claims Disney failed to properly designate certain YouTube videos as “made for kids” and allowed the collection of personal information from children without verifiable parental consent. On the same day, the parties submitted a stipulation and proposed order for permanent injunction, civil penalty judgment, and other relief. Under the agreement, Disney will implement an audience designation programme for its videos, ensure proper notice and verifiable parental consent in line with COPPA, and pay a civil penalty of USD 10 million. The order also mandates compliance reporting, record-keeping, and a ten-year maintenance of the audience designation programme.