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YouTube accused of improperly using targeted ads on children’s videos

By Nithya Bose in US business news, posted August 24, 2023

YouTube's advertising practices could impact children's privacy when viewing kids' content, new research finds.

The platform has responded that it has limited viewer data collection and didn’t serve targeted ads on such videos.

Targeted ads, which utilize user data to customize marketing based on online behavior and interests, are an effective way to reach the right audience.

However, under federal privacy regulations, online services for children must secure parental consent before collecting personal information.

It’s from users under the age of 13 for ad targeting purposes.

This commitment extends to anyone watching child-oriented videos on YouTube.

Fairplay, a prominent children's advocacy group, is now challenging YouTube's privacy assertions.

They claim to have conducted a $10 ad campaign this month using advertising placement tools from YouTube's parent company, Google.

It’s exclusively on children's video channels.

The ads were displayed to user segments chosen by Fairplay.

It includes motorcycle enthusiasts, high-end computer geeks, and avid investors on popular channels like "Cocomelon Nursery Rhymes," "Talking Tom," and "Like Nastya."

In total, Fairplay's ads were featured 1,446 times on YouTube's children's video channels.

Adalytics, the company behind the initial research reported by The New York Times last week, said it had examined similar ad campaigns on children's channels from various media buyers.

Fairplay, alongside the Center for Digital Democracy and two other non-profit organizations, filed a complaint with the Federal Trade Commission (FTC).

They urged the agency to investigate Google and YouTube's data and advertising practices on videos designed for children.

In a letter addressed to Lina M. Khan, the FTC chair, the organizations argued that the new research "raises serious questions" regarding Google's potential violation of federal children's privacy regulations.

"Fundamental misunderstanding"

Michael Aciman, a Google spokesman, said: “The conclusions in this report point to a fundamental misunderstanding of how advertising works on made-for-kids content.

“We do not allow ads personalization on made-for-kids content, and we do not allow advertisers to target children with ads across any of our products.”

Google said it continued to adhere to child privacy agreements established with the FTC.

Additionally, Google noted some YouTube channels feature a blend of content designed for children and adults.

It could explain Fairplay's receipt of audience segment reports for video ads not intended for children.

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This isn't the first time that Fairplay and the Center for Digital Democracy have raised concerns with the FTC about Google and YouTube's handling of children's privacy.

In 2018, they filed a complaint with the agency, joined by 21 other groups.

They accused the companies of improper data collection from children who watched child-oriented videos.

Moreover, In 2019, the FTC and New York State found Google guilty of illegally gathering personal information from children viewing kids' channels.

Regulators said the company had profited from using children's data to target them with ads.

It resulted in Google and YouTube agreeing to a record $170 million settlement to resolve these allegations.

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