Disney's recent settlement over COPPA violations has sparked concerns among parents regarding their children's online privacy. The $10 million penalty highlights significant lapses in protecting young users on platforms like YouTube. This post unpacks what exactly went wrong, the potential risks for your family, and actionable steps to shield your child's data online.
What Data Points Were Leaked?
When Disney settled for $10 million over alleged COPPA violations, the heart of the problem was the collection of kids’ personal data through YouTube channels that were supposed to be protected. The FTC’s investigation found that Disney, along with other companies, mislabeled some of its YouTube content as “general audience” when it should have been marked “Made for Kids.” That single misstep allowed YouTube to collect data that’s strictly off-limits under COPPA.
What Kind of Data Was Collected?
The data in question wasn’t just harmless browsing history. According to the FTC, these were the main points:
Persistent Identifiers: These are things like cookies, device IDs, or IP addresses. They can be used to track a user across websites and build a profile of their interests and habits—even if that user is a young child.
Viewing History: YouTube’s tracking extended to the videos kids watched, which gives insight into their interests, preferences, and even routines.
Device and Location Data: Although less detailed than a home address, device information and rough location data can still help paint a picture of where a child is accessing content from.
Why Does “Made for Kids” Matter?
YouTube’s “Made for Kids” label triggers stricter data protections. When a video is flagged this way, YouTube is supposed to limit data collection and not serve personalized ads. Disney’s failure to correctly label content meant these protections weren’t applied. As a result, YouTube continued collecting data as if the audience was adults—completely out of line with COPPA’s requirements.
The FTC’s Findings
The FTC’s complaint was clear: by mislabeling content, Disney let YouTube collect and use data from children under 13 without parental consent. This isn’t just a technical slip-up. It meant targeted advertising and tracking profiles were built on kids, a direct breach of the law’s intent.
The bottom line: Disney’s labeling error opened the door for large-scale data collection on children—a practice COPPA was designed to block. Parents had every right to expect better.
Should You Be Worried?
The Ripple Effect on Families
When children’s data ends up in the wrong hands, it’s not just an abstract concern—it hits close to home. Parents trust brands like Disney to protect their kids’ privacy. The recent COPPA penalty isn’t just a legal slap on the wrist; it’s a wake-up call for families everywhere. Here’s what’s at stake:
Personal details exposed: Names, ages, even contact info—once collected, this data can be misused in ways that are hard to undo.
Targeted advertising: Kids may become subjects of manipulative marketing, nudged into making choices they don’t fully understand.
Permanent digital footprints: Information collected early can follow a child for years, affecting their digital safety and future opportunities.
It’s easy to overlook just how much is at risk until a breach like this brings it into sharp focus.
Data Privacy Breaches: More Than Just an Inconvenience
A breach of children’s data isn’t minor. The broader implications go beyond one company or one family:
Loss of trust: Once a breach happens, regaining trust is an uphill battle—not just for the company involved, but for the digital world as a whole.
Identity theft risks: Even partial data, when pieced together, can lead to serious consequences like identity theft or online bullying.
Long-term consequences: Children don’t get to choose what’s shared about them. Early exposure can impact their safety and reputation for years to come.
Families aren’t powerless, but it’s clear that vigilance is non-negotiable.
What Disney’s Settlement Says About COPPA Compliance
Disney’s settlement is more than a headline—it’s a reflection of widespread compliance gaps in protecting children online. Here’s what stands out:
COPPA’s teeth: The law is clear—companies must get parental consent before collecting data from kids under 13. Disney’s penalty shows that even giants can slip up.
Wider industry issues: If a company with vast resources like Disney can falter, smaller platforms are likely struggling too.
Need for real solutions: It’s not just about meeting the letter of the law but actually respecting kids’ digital privacy.
For parents looking to add a layer of protection, tools like Cloaked can help. By allowing families to mask or control personal data before it’s shared with apps or websites, Cloaked gives parents practical control—putting privacy back in their hands.
When it comes to your child’s data, being proactive isn’t optional—it’s essential.
What Should Be Your Next Steps?
Protecting your child’s digital footprint isn’t just about trust—it’s about taking action, every single day. After headlines like Disney’s $10 million COPPA settlement for alleged data privacy lapses, it’s clear: even big names can slip up when it comes to children’s privacy online. Parents can’t afford to take a back seat. Here’s how you can take charge, step by step.
1. Start With Honest Conversations
Talk to your children about their digital habits. Keep the dialogue open. Let them know why you care about their privacy. Ask simple questions:
Who are you chatting with online?
What apps are you using most?
Has anyone asked you for personal information?
Kids are more likely to flag something odd if you’ve already built trust around these topics.
2. Use Parental Controls and Monitoring Tools
Relying on good intentions isn’t enough. Leverage technology built to help you watch over your child’s online activity:
Device-level controls: Most smartphones and tablets offer settings to restrict app downloads, set screen time, and filter content.
App-specific tools: Platforms like YouTube Kids, TikTok Family Pairing, and Roblox parental controls allow you to set boundaries directly in the app.
Network solutions: Some routers come with parental controls to block harmful sites or schedule offline times.
Don’t forget to check privacy settings regularly—apps and platforms update their features, and what worked last month may need tweaking today.
3. Keep Track of Permissions
When your child installs a new app, pay close attention to the permissions it requests. Does that drawing app really need access to your microphone or contacts? If it feels off, don’t allow it. Review these settings often.
4. Make Use of Privacy-First Tools
If you want to add an extra layer of safety, privacy-focused solutions are available. For instance, Cloaked offers a way to generate secure, temporary emails and phone numbers, so your child’s real contact details aren’t floating around the web. This can drastically reduce unwanted marketing, scams, or even data leaks. Tools like these put more control in your hands—letting your family interact online without constantly handing out sensitive information.
5. Stay Informed and Educated
Privacy rules like COPPA exist to protect children, but enforcement gaps can still expose your family to risks. Stay updated on:
News about data breaches or settlements involving children’s apps (like the recent Disney case).
New tools and legislation designed to safeguard children online.
Sign up for reputable digital safety newsletters, and join online parent groups where tips and warnings circulate fast.
A little consistency goes a long way in keeping your child’s digital world safer.
Resources Worth Bookmarking
Common Sense Media: For app and platform reviews
StaySafeOnline: For the latest privacy tips
Cloaked: For secure, disposable emails and phone numbers
Taking charge of your child’s privacy is a commitment, but it’s doable with the right mix of open communication, smart tech, and regular check-ins. Don’t leave it to chance—your child’s safety is worth every step.
Cloaked FAQs Accordion
Frequently Asked Questions
Cloaked is a privacy-first tool that lets you create secure aliases for emails, phone numbers, and more—shielding your real identity online. With Cloaked, your personal info stays protected from breaches, scams, and tracking.
Look for urgent messages, unfamiliar links, or strange sender addresses. With Cloaked aliases, it’s easier to identify which site may have leaked your contact details and ignore suspicious communications.
Yes. If a Cloaked alias starts receiving spam, you can pause, delete, or rotate it. This eliminates the need to change your real email or phone number.
They do different jobs. VPNs protect browsing. Password managers secure logins. Cloaked protects your real identity at the contact level—emails, phones, and personal identifiers.
Definitely. Use Cloaked aliases to avoid spam and limit exposure to companies that may mishandle or leak your data.
At Cloaked, we believe the best way to protect your personal information is to keep it private before it ever gets out. That’s why we help you remove your data from people-search sites that expose your home address, phone number, SSN, and other personal details. And to keep your info private going forward, Cloaked lets you create unique, secure emails and phone numbers with one click - so you sign up for new experiences without giving away your real info. With Cloaked, your privacy isn’t a setting - it’s the default. Take back control of your personal data with thousands of Cloaked users.
*Disclaimer: You agree not to use any aspect of the Cloaked Services for FCRA purposes.
