Disney Slammed for $10M Child Data Scandal

Disney’s hit with $10 million settlement for unlawful child data collection, highlighting the need for stricter protections.

Story Highlights

Disney settles for $10 million over allegations of illegally collecting children’s data.
FTC’s COPPA amendments emphasize parental consent for data collection.
Amendments expand the definition of personal information to include biometric data.
New regulations aim to strengthen children’s online privacy protections.

FTC’s Action on Child Data Protection

The Federal Trade Commission (FTC) has implemented significant amendments to the Children’s Online Privacy Protection Act (COPPA), demanding companies to secure parental consent before collecting data from children under 13. This update, effective June 23, 2025, is the first major change since 2013, aimed at enhancing online privacy for children. The amendments reflect increased regulatory scrutiny on data privacy, particularly in light of recent technological advances and data breaches.

The necessity of these amendments is underscored by recent enforcement actions, including Disney’s $10 million settlement over allegations of unlawful data collection. Such actions signal the FTC’s commitment to ensuring companies adhere to stricter data handling and privacy standards. As these rules are now effective, companies are required to update privacy policies and consent mechanisms by April 22, 2026.

Broader Implications and Industry Response

The updated COPPA rules are poised to have far-reaching effects on businesses, particularly those targeting young audiences. Companies will face increased compliance costs as they implement new data security and retention protocols. Additionally, the expanded definition of personal information now includes biometric data, pushing companies to reassess their data collection practices. This regulatory shift is expected to reduce targeted advertising to children, thereby decreasing potential revenue streams for some businesses.

On the social front, these changes are likely to foster improved trust in online platforms, as parents gain greater control and transparency over their children’s data. Politically, the amendments set a precedent for potential future privacy legislation, reflecting a broader trend towards enhanced digital safety in the U.S.

Expert Perspectives and Future Outlook

Legal experts commend the FTC’s initiative, noting that the amendments significantly raise the compliance bar, particularly regarding biometric data. However, industry voices express concerns about the operational complexities and legal risks associated with these changes. Academic commentators emphasize the importance of aligning U.S. privacy laws with international standards, such as the EU’s GDPR, to ensure comprehensive protections as technology evolves.

Disney to Pay $10 Million to Settle Allegations of Unlawful Collection of Children’s Data: FTChttps://t.co/Czqe7Icz3A

— JBH (@JBH15764738) September 3, 2025

Moving forward, the COPPA amendments are expected to influence privacy standards across sectors like education technology and gaming. The FTC’s firm stance on child data privacy underscores the ongoing need for vigilant regulatory oversight in an era of rapid technological advancement.