The Federal Trade Commission said Disney (DIS) let personal data be collected from children who watched kid-directed videos on YouTube. The agency said parents were not notified and no consent was obtained, which is required under the Children’s Online Privacy Protection Rule.
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The complaint, filed by the Justice Department, focused on Disney videos that reached young audiences. Regulators said those views triggered data collection that was then used to target ads to children under 13.
Disney’s Settlement Requires Payment and Clear Fixes
Disney agreed to pay $10 million to settle the case. The deal ends the immediate dispute but it also puts the company under a tighter set of rules going forward. The fine does not move Disney stock today, but it leaves the entertainment giant dealing with a reputational bruise that will not fade quickly.
Under the proposed order Disney must follow COPPA requirements and set up a program to review videos it posts to YouTube. That program is meant to make sure kid-directed content is handled correctly and that data collection for targeted ads is turned off.
Complaint Cites YouTube Labeling Lapses
Regulators said Disney failed to label some uploads as “Made for Kids.” That tag disables personal-data collection and a set of features that are not meant for children.
Because the tag was missing, the FTC says children were exposed to tracking and to features that were not age-appropriate. The agency also noted that Disney receives a share of ad revenue tied to its YouTube videos, as well as ads the company sells directly.
Order Pushes Age Assurance and Oversight
The settlement presses Disney to run a formal review of whether videos should carry the “Made for Kids” label. The requirement remains in place unless YouTube itself rolls out age-assurance technology that meets regulators’ expectations.
FTC Chair Andrew Ferguson said the order penalizes a breach of parents’ trust and is meant to make room for better protection of kids online through stronger age assurance.
Disney Responds and Pledges Safety
A Disney spokesperson said the company supports the well-being and safety of children and families. The statement said Disney has a long tradition of following children’s privacy laws and will keep investing in the tools needed to stay a leader in this area.
The company now has to show that its new review process works and that kid-focused content is clearly labeled. How it implements the program will be watched closely by regulators and by parents.
What It Could Mean for Disney Stock
Regulatory fines of this size are not likely to move Disney’s financials by themselves. The larger question is compliance and reputation. If Disney tightens its controls and avoids future penalties, investors may view the episode as a contained risk.
If the company falls short of the new standards, more scrutiny could follow. For now, the takeaway is simple. Disney pays the fine, builds a stronger labeling and review system, and tries to close the door on a costly privacy issue.
Is Disney Stock a Good Stock to Buy?
Despite the latest FTC fine, Wall Street still leans bullish on Disney stock. TipRanks data shows that out of 22 analyst ratings in the past three months, 19 call the stock a Buy and just three suggest a Hold. No analyst has issued a Sell rating.
The average 12-month DIS price target sits at $137, which represents a 15.84% upside from Disney’s most recent close.
