Washington, D.C.; January 2nd, 2026
The United States Department of Justice announced that The Walt Disney Company has agreed to pay a $10 million civil penalty and accept a federal injunction, resolving allegations that the company violated the Children’s Online Privacy Protection Act, a federal law designed to safeguard the personal information of children under the age of 13; the settlement follows a government investigation into Disney’s online video operations and how certain content was classified and managed under existing privacy requirements.
According to the Department of Justice, the allegations stem from Disney’s handling of online video content distributed through YouTube, content that federal authorities say was directed toward children yet was not properly designated as such; this designation matters under federal law, because content identified as directed toward children triggers strict rules governing the collection, use, and disclosure of personal information, including a requirement for verifiable parental consent.
The Children’s Online Privacy Protection Act, commonly known as COPPA, was enacted to ensure that parents retain control over how their children’s information is gathered and used in digital environments; under the statute, operators of websites and online services must provide clear notice and obtain consent before collecting personal data from children under 13, obligations that the Justice Department alleges were not fully met in Disney’s case.
The settlement, entered in federal court, requires Disney to pay the $10 million civil penalty and to comply with a permanent injunction that restricts how the company may operate certain online content going forward; the injunction mandates that Disney implement and maintain a compliance program designed to ensure that content directed toward children is properly identified and handled in accordance with federal law, effectively placing the company under ongoing legal obligation to correct the practices identified by regulators.
In announcing the settlement, Justice Department officials emphasized that the case was not about brand recognition or corporate size, but about enforcement of a law that applies equally to all companies operating in the digital space; the Department stated that protecting children’s privacy online remains a priority, and that companies benefiting from large digital audiences carry corresponding legal responsibilities.
While Disney did not admit wrongdoing as part of the settlement, the agreement resolves the government’s allegations and brings the matter to a close without further litigation; the penalty and injunction together represent one of the more substantial enforcement actions tied to children’s online privacy in recent years, underscoring the government’s continued focus on how data is handled in environments where children are a significant part of the audience.
The case also highlights the evolving tension between modern digital content distribution and laws written to protect minors in an era where online platforms, video streaming, and algorithm-driven recommendations shape what children see and how their information is tracked; COPPA, enacted in 1998 and enforced since 2000, remains the primary federal statute governing this space, and federal authorities have repeatedly stated that compliance is not optional, regardless of how content is branded or marketed.
For Disney, a company whose identity has long been tied to family-friendly entertainment, the settlement serves as a reminder that trust and compliance are not implied by reputation alone; they are measured by adherence to the law, particularly when children’s data is involved.
The Justice Department’s action sends a clear signal: digital reach does not dilute legal responsibility, and the protections afforded to children under federal law remain enforceable, even against the most powerful names in entertainment.
Sources
Primary First-Hand Sources
• UNITED STATES DEPARTMENT OF JUSTICE, Office of Public Affairs, “Disney Agrees to $10M Civil Penalty and Injunction for Alleged Violations of Children’s Privacy Laws”
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