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Disney Faces Two Class Actions After $10 Million COPPA Deal Over YouTube Labeling

Plaintiffs are pursuing state-law damages despite the federal deal under a Ninth Circuit ruling on COPPA preemption.

Overview

  • On September 2, the DOJ filed a complaint on an FTC referral and lodged a proposed order requiring Disney to pay $10 million, create a Mandated Audience Designation Program, and report compliance for ten years.
  • Two putative class actions followed within days: a September 5 filing in the Central District of California and a September 9 filing in Los Angeles County Superior Court.
  • Both complaints allege Disney failed to mark certain YouTube uploads as “Made for Kids,” enabling unlawful data collection from children, and they seek damages exceeding $5 million.
  • Claims include intrusion upon seclusion, invasion of privacy, trespass to chattels, unjust enrichment, and negligence, with additional California statutory and constitutional privacy claims in the state case.
  • Disney acknowledged mislabeling and emphasized child safety in a statement, while industry commentary speculates YouTube could reassess Disney content distribution, which has not been confirmed; separately, Google/YouTube reached a $30 million class-action settlement in August.