Walt Disney Lawsuit, $2.75M Privacy Penalty + $43M Gender Pay Settlement Hit Company

Disney agreed to pay $2.75 million on February 11, 2026, to settle California’s allegations that it violated consumer privacy laws by failing to honor opt-out requests across streaming services. Separately, a Los Angeles judge granted final approval on January 27, 2026, of a $43.25 million settlement in a gender pay discrimination class action. Combined, Disney faces over $46 million in penalties this year alone for privacy violations and pay equity failures.

Attorney General Rob Bonta called this “the largest settlement to date under the CCPA over Disney’s failure to stop selling and sharing the data of consumers that explicitly asked it to.”

Disney’s Privacy Violations: Your Data Sold Despite Opt-Out

California regulators found that Disney did not fully honor consumers’ requests to opt out of the sale or sharing of their personal data across devices and streaming services connected to their accounts. The investigation began in January 2024 targeting streaming platforms’ compliance with the California Consumer Privacy Act (CCPA).

Opt-out toggles on Disney websites and apps often applied only to a specific streaming service or device, rather than the user’s entire account. In practice, this meant that opting out on one platform did not necessarily prevent data sharing across others tied to the same login.

Disney’s webform halted data sharing through its own advertising platform, but it reportedly allowed continued sharing with certain third-party ad-tech companies embedded on its platforms. Some connected TV apps lacked in-app opt-out options entirely and redirected users to the webform — which did not fully halt data sharing.

What Disney Must Change Under the Settlement

Disney has 90 days under its legally binding pact with California to cease having such sticky fingers when it comes to the data of Disney+ customers and users of the company’s other streaming platforms.

“DEFENDANTS shall provide CLEAR AND CONSPICUOUS notice to CONSUMERS in connection with DISNEY SERVICES that DEFENDANTS conduct CROSS CONTEXT BEHAVIORAL ADVERTISING using PERSONAL INFORMATION obtained from THIRD PARTIES,” the final judgement and permanent injunction states.

The settlement requires Disney to stop selling and sharing consumer personal information immediately when requested, provide clear notice about cross-context behavioral advertising practices, honor Global Privacy Control signals account-wide rather than device-by-device, and create accessible opt-out mechanisms across all streaming services, apps, and devices.

The $43 Million Gender Pay Discrimination Settlement

A Los Angeles state judge on Monday January 27, 2026, granted final approval of a $43.25 million settlement in a class-action lawsuit alleging that The Walt Disney Co. underpaid women workers. The lawsuit alleged Disney paid “women workers tens of thousands of dollars less than their male counterparts,” skipped over women for promotions, and assigned them extra work without pay.

Plaintiffs allege that Disney pays women in California less than their male counterparts. The class action is certified under California’s Equal Pay Act, which requires women to compare themselves to men in “substantially similar” jobs.

An expert I/O psychologist who reviewed substantial material produced by Disney about its “global job framework” opined that Disney determined that jobs assigned the same job family and job level were substantially similar jobs. This meant Disney’s own classification system proved women were underpaid for identical work.

Disney agreed to retain a labor economist for the next three years to perform a pay equity analysis of all full-time, non-union, California employees below the level of vice president using the model developed by plaintiff’s expert, and to take appropriate steps to address any statistically significant pay differences found.

Disney’s Children’s Privacy Violation: $10 Million Penalty

On December 31, 2025, the Justice Department announced that a federal court entered a stipulated order requiring Disney to pay $10 million in civil penalties to resolve allegations that Disney violated the Children’s Online Privacy Protection Act (COPPA) in connection with Disney’s popular YouTube video content.

The government alleged that Disney improperly failed to designate YouTube video content as directed toward children. As a result, Disney, and others acting on Disney’s behalf, targeted advertising toward children on YouTube and unlawfully collected children’s information without parental notice and consent, in violation of COPPA.

COPPA prohibits website operators from knowingly collecting, using, or disclosing personal information from children under 13 unless they provide notice to and obtain consent from parents. Disney’s YouTube content has billions of views in the United States alone.

Related article: Dollar General Class Action Lawsuit 2026, $15M Price Overcharge Settlement — File Claims By April 13 For Up To $20 Cash Plus $3 Store Discount

Who Qualifies and What Consumers Should Know

Privacy Settlement: If you were a Disney+, Hulu, or ESPN+ subscriber in California who attempted to opt out of data selling or sharing between January 2024 and February 2026, you were affected. This settlement does not provide individual payouts to consumers—instead, it requires Disney to fix its opt-out systems and pay penalties to the state.

Gender Pay Settlement: The $43.25 million settlement covers current and former female employees of Disney in California who worked in positions classified under Disney’s job family and job level system. Eligible class members were notified and had until the court-approved deadline to submit claims or opt out.

COPPA Violation: Parents whose children under 13 viewed Disney content on YouTube and had their data collected without consent were affected. The $10 million penalty goes to the federal government, not individual families.

What Happens Next for Disney and Consumers

Under the proposed settlement, Disney must pay civil penalties and implement robust opt-out mechanisms that fully stop the sale or sharing of consumer data when requested. California will monitor Disney’s compliance over the coming months.

For the gender pay settlement, Disney must complete three years of independent pay equity analysis and remedy any statistically significant disparities found. This creates ongoing accountability beyond the initial $43.25 million payout.

The stipulated order bars Disney from operating on YouTube in a manner that violates COPPA and requires Disney to create a program that will ensure it properly complies with COPPA on YouTube going forward.

Frequently Asked Questions

What are the Walt Disney lawsuits about?

Disney faces three major lawsuits in 2026: a $2.75 million California privacy settlement for failing to honor opt-out requests across streaming services, a $43.25 million gender pay discrimination settlement for underpaying female employees, and a $10 million federal penalty for violating children’s privacy laws on YouTube.

Can I claim money from these settlements?

The privacy and COPPA settlements pay penalties to the government, not consumers. The gender pay settlement provides compensation to eligible female Disney employees in California who filed claims by the court-approved deadline.

What must Disney change under these settlements?

Disney must fix opt-out mechanisms across all streaming platforms within 90 days, conduct three years of independent pay equity analysis for California employees, and create COPPA compliance programs for YouTube content to prevent future children’s privacy violations.

Who was eligible for the gender pay settlement?

Current and former female Disney employees in California who worked in positions classified under Disney’s job family and job level system were eligible. The settlement covered women paid less than men in substantially similar jobs.

Did Disney admit wrongdoing?

Disney maintained that its “employment policies and practices are lawful and appropriate” in the gender pay case. The company settled to avoid ongoing litigation costs without admitting liability in any of the three matters.

What are my rights as a Disney streaming customer?

California consumers have the right under CCPA to opt out of data selling and sharing. Disney must now honor these requests across all devices and services linked to your account—not just individual platforms. Check your account settings to exercise opt-out rights.

Are there more Disney lawsuits coming?

The $2.75 million settlement emerged from a California Department of Justice Investigative Sweep announced in January 2024 targeting streaming services’ compliance with the CCPA. Other streaming services remain under investigation, and Disney could face additional enforcement actions if compliance issues continue.

Last Updated: February 16, 2026

This article is informational only and does not constitute legal advice. For specific guidance about privacy rights, employment discrimination, or consumer protection, consult a qualified attorney.

Protect your privacy and workplace rights. Understanding major corporate settlements helps consumers and employees recognize when their rights may be violated.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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