thunder::tech announces the acquisition of Silent Partners Media Group. Read more in our blog post.
SERVICES EXPERIENCE INDUSTRIES BLOG & NEWS ABOUT US CONTACT US
search thundertech.com
SERVICES EXPERIENCE INDUSTRIES BLOG & NEWS ABOUT US CONTACT US
888.321.8422
Cleveland Detroit Chicago

Impact of the FTC Violation Fine for YouTube and Advertising

Do you have kids or know a child between the ages of three and 10? Well, chances are you have heard of the insanely popular YouTube channels Ryan ToyReview or Cocomelon – Nursery Rhymes. Channels like these have tens of millions of subscribers and even more monthly views. What is different about these channels versus the likes of PewdiePie and the Paul Brothers is that these channels are specifically targeted to preschool and elementary school-aged children in the content that they produce. 



 

Channels like these produce sponsored content and run ads, all geared at children under the age of 13. Advertising to children this way is a clear violation of the Children's Online Privacy Protection Act. COPPA regulates the collection of information about children under 13. To learn more about COPPA check out a previous thunder::tech blog about COPPA and internet safety for kids! 

In a historic ruling on September 4, 2019, the Federal Trade Commission fined YouTube $170 million for its violations of children’s privacy. The FTC’s complaint alleges that “YouTube did not properly notify parents and get their consent before collecting and using their children’s personal information. Specifically, YouTube collected “persistent identifiers” such as cookies that are used to track viewers over time and across websites for advertising to children. In addition to paying the fine, of which $34 million will go to the state of New York and $136 million will go to the US Treasury for the COPPA penalty, YouTube must create a process for users to identify kid-centric content that will no longer be used for advertising purposes. 

Upcoming Changes to Kids Content on YouTube

So what does this fine mean to viewers and content creators? 

  1. YouTube will treat anyone who watches content geared for kids as a user under the age of 13 regardless of their actual age 
  2. Creators will be required to notify YouTube if their content is geared towards children and YouTube will also use machine learning to identify videos geared towards kids as well
    • There will be consequences for creators who fail to identify or incorrectly categorize their content 
  3. YouTube will stop serving ads on content aimed at kids
  4. Some YouTube features like comments and likes will not be enabled on kids content

What Brands Need to Know

So now that kids are better protected (some say these new standards still aren’t enough), what does that mean for brands that have built a kids following on YouTube? Changes need to happen. With the ruling, YouTube understands that there will be a significant impact on many brands so the platform gave creators have four months from the ruling date to adjust their tactics before changes are to take effect on YouTube. 

Now is the time to take a critical look at your content inventory and review who the desired and current audience is for each piece. Then, if you don’t already, it’s time to create your own COPPA-approved content checklist for new content production compliance. Lastly, keep an eye on the sky, or at least the legislation horizon for changes required of your favorite marketing mediums. 

Contact thunder::tech today to learn how we can assist your brand with the upcoming required YouTube changes!
 
View Previous Item Episode 112 - Opportunities through Changing Media Habits ::
See All Posts
View Next Item Making Your Next Content Management System (CMS) Decision Easier ::
See All Posts

Related Blog & News

Master Pizza defends Cleveland on Hulu’s “Best in Dough”

Blog | Jan 20, 2023

Content Marketing for Manufacturers

Blog | Jan 05, 2023

2023 Social Media Field Guide

Blog | Dec 06, 2022

1000+ Marketer’s Take on the Economy

Blog | Nov 15, 2022

Contact us today! No pressure, but we are here to help

Reach out to learn more about how thunder::tech can help your business not only succeed, but accelerate. 

services about us experience contact us blog & news careers
thunder::tech Integrated Marketing for a Connected World our offices | 888.321.8422
Join 5,000+ other marketers receiving monthly marketing trends
Stay Connected
thunder::tech 888.321.8422 Integrated Marketing for a Connected World | our offices
© 2023 thundertech.com. All Rights Reserved. | Privacy Policy