Entertainment giant resolves U.S. claims of unlawful data gathering from kids online

September 3, 2025: Disney has agreed to pay $10 million to settle allegations from U.S. regulators that the company unlawfully allowed the collection of children’s personal data through its online platforms and apps. The settlement brings to light growing concerns about children’s privacy in the digital age.

The Allegations

According to federal authorities, Disney and its subsidiaries failed to comply with the Children’s Online Privacy Protection Act (COPPA), which restricts companies from collecting personal information from children under the age of 13 without parental consent. Regulators claim that Disney-enabled platforms allowed third parties to gather sensitive data, including tracking details and online behavior, without proper safeguards.

What the Settlement Means

While Disney has not admitted to wrongdoing, the company agreed to the multimillion-dollar settlement to resolve the case. The funds will go toward enforcing compliance and monitoring measures to ensure children’s privacy is better protected moving forward. The deal also requires Disney to strengthen its oversight of developers and advertisers operating within its apps and digital services.

Disney’s Response

In a statement, Disney emphasized its commitment to protecting children online, highlighting that the company has updated its policies and practices to align with regulatory standards. The entertainment giant said it is working closely with authorities to ensure such incidents do not occur again.

A Wider Industry Wake-Up Call

The settlement underscores the growing scrutiny on tech and entertainment companies over how they handle children’s data. With digital platforms becoming increasingly central to kids’ entertainment, regulators are making it clear that violations of privacy laws will come at a steep cost.