Google/YouTube's been breaking the law for years as they've been mining data from minors who are watching their platform YouTube Kids. They've been using that to create targeted ads for kids as this is very illegal and have been using their algorithm to give priority to other people who were making disgusting content. You know the really gross predatory copyright breaking content aimed at kids, it's all super gross stuff. The problem is that they've been encouraging that by allowing it and the algorithm has been picking them out and monetizing it like crazy so the FTC (Federal Trade Commission) were forced to step in and change something because Google/YouTube just wasn't willing to do it themselves and prepare for the future.
Google/YouTube thought they could break the law and make as much money as long as they could and when things got bad they passed the buck to the content creators cause whenever Google/YouTube messes up it's the content creators that end up having to pay the price for it. They did get fined by the FTC
($170 million) but only a teeny tiny fraction compared to what they make. So the FTC is stepping in and saying, "If you make content that is for kids then you need to mark it as for kids" using YouTube's own little system. It's a little option on your YouTube channel or individual videos can be marked as "for kids". Ideally this would just mean that your video could only be viewable in the YouTube Kids app. That would solve a lot of problems, not sure why it didn't happen that way before though.
Don't know why Google/YouTube isn't doing that in response to this because it would solve a lot of problems, but no instead what happens is that If you mark your video or your channel as "for kids" it means that it will no longer have targeted ads which drastically lowers ad revenue something like 10%. Also you won't get as many views so it's going to be less than 10% because no one can search your video, it will not come up in recommended, people will not get notifications for it. It will basically be invisible so unless someone subscribes to your channel it will be in their feed If they go to it specifically, and it will be on your channel If they go to your channel directly. But it won't be anywhere else, not on YouTube, no discoverability, it's essentially a death sentence for video.
It's not going to make you any money and it's not going to be viewed by anybody. So they're basically telling everyone to start marking their YouTube content which is all well and good but then you start to look at the specifics the FTC is talking about in the COPPA law and they're being super vague about it. They're saying it's not even just stuff that is explicitly for kids and yet the wording from the FTC is basically saying, "It's not just stuff for kids but it's anything a kid
might like." Anything a kid might find interesting they specifically mentioned "video games", "toys", and "pop culture" and even words like "fun" and "cool" and "yeah", things that are "colorful" and "vibrant".
The wording is so vague that there's a video of an FTC member at a press conference totally out for blood, talking about taking down YouTube content creators like shooting fish in a barrel. They're talking about heavy career destroying fines ($42,000) potentially per video and Google/YouTube of course especially when this all started Google/YouTube is coming around saying, "You guys know what's best, If your content isn't for kids then you're probably going to be fine, gaming is going to be fine...but get a lawyer." Everything that Google/YouTube is currently saying about this isn't lining up with what the FTC is saying, "No, anyone making anything that a kid might like is just doomed. We're either going to fine you or shut down your YouTube channel."