How COPPA Affects Online Videos

The COPPA Ripple Effect: How a Lawsuit Changed YouTube Forever

New Online Child Protection Act

YouTube is a massive platform, with over 800 million videos and more than a billion daily views. A huge portion of this audience is children under 13, and in 2018, this demographic became the center of a major controversy. Several advocacy groups accused YouTube of violating the Children's Online Privacy Protection Act (COPPA), leading to a landmark settlement that changed how content creators operate.

What Is COPPA?

Established in 1998, COPPA is a federal law designed to protect children’s privacy online. It prevents websites and online services from tracking the activity of children under 13 without verifiable parental consent. The law requires platforms to be transparent about what data they collect and how they use it. It also prohibits them from collecting more data than is absolutely necessary.

YouTube's Violation and the Fallout

The lawsuit against Google and YouTube was triggered by two main issues. The first was the existence of inappropriate videos featuring popular children’s characters, like a video showing violent and disturbing content with Peppa Pig. This was a concern for parents and a clear indication that YouTube’s systems weren’t adequately protecting young viewers.

However, the primary focus of the legal action was YouTube's data collection practices. The complaint alleged that YouTube was illegally collecting personal information, specifically persistent identifiers or cookies, from viewers of child-directed channels. The platform used these cookies to deliver targeted ads and, in doing so, made millions of dollars without parental consent.

Initially, Google denied any wrongdoing, claiming it was a “General Audience” platform and that its terms of service required users to be at least 13. This argument fell apart when it was revealed that Google had been boasting to advertisers about its young audience and its superior reach to children compared to traditional TV channels.

In 2019, Google and YouTube agreed to a $170 million settlement with the FTC and the state of New York. A major part of this settlement required YouTube to implement a system for creators to identify whether their content was “made for kids.”

The Impact on Content Creators

Starting in March 2020, content creators were faced with a new reality. When uploading a video, they had to declare if it was "made for kids" or not. The key distinction here is not whether the video is family-friendly, but whether the primary intended audience is children.

A video marked as "made for kids" loses access to a range of features, including comments, playlists, end screens, notifications, and, most importantly, targeted ads. This is because targeted ads rely on the very cookies that COPPA prohibits. This change significantly impacted the ad revenue of many channels.

The new policy caused widespread panic. The situation was made even more complicated by the fact that YouTube’s algorithm could override a creator's setting if it determined the content was primarily for children. A channel with puppet shows that had mature themes, for example, found itself in a legal gray area.

The stakes were high, with the FTC threatening to fine violators up to $42,000 per video. Many creators chose to shut down their channels rather than risk the hefty penalty.

Creating a Compliant Channel

If you're a content creator, understanding COPPA is crucial. The best approach is to decide on your target audience from the start and stick with it. Don’t try to game the system by mislabeling your content; marking a mature video "for kids" or a children's video "not for kids" is a violation. The potential fine isn't worth the small amount of ad revenue you might gain.

While targeted ads are out, a profitable children's channel is still possible. Many companies will still advertise general commercials on videos for kids. With YouTube's massive reach, the potential for a large, engaged audience is still there—it just requires careful planning and a clear understanding of the rules.

Stay safe and create responsibly.

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