An 8-year-old YouTube millionaire could be investigated by the Federal Trade Commission over paid advertisements in his popular toy review videos.
Complaint Against Ryan ToysReview Over Sponsorships
Truth In Advertising, a consumer watchdog, filed a complaint against Ryan ToysReview, a popular YouTube channel that has 21 million followers and 30 billion views. The nonprofit group alleged that its host, Ryan Kaji, does not disclose to his very young viewers when a toy is sent by one of his sponsors.
According to their investigation, between Jan. 1 and July 31 this year, about 92 percent of videos published by Ryan ToysReview promote at least one product or program aimed at children under the age of 5. The group explained that unlike adults, preschoolers would not be able to tell when the content is organic or paid sponsorship.
"The intended audience, which are preschoolers, has no idea that they're being pitched a commercial," said Bonnie Pattern, executive director at Truth In Advertising, in a statement to The Verge. "The goal is for them to say, 'Mom, I want what Ryan has.'"
The group's concern is the disclaimer often found in the description box of toy review videos or quick voice-overs are not enough to communicate to preschoolers that they are watching a paid advertisement.
In a statement to Fox Business, Kaji's father Shion argued that the YouTube channel follows existing laws and regulations, including the requirements for disclosing sponsorships.
Truth In Advertising is urging the FTC to review the "deceptive marketing" on the YouTube channel and make Ryan ToysReview adhere to follow the law, which states that paid content must always be disclosed clearly to the audience.
Ryan ToysReview: 2018's Highest-Paid YouTuber
Ryan ToysReview videos feature Ryan unboxing and playing with toys. His parents, Shion and Kieu-Loan, run his channel.
Last year, Kaji became the highest-paid personality on YouTube after raking in $22 million, beating the likes of Jake and Logan Paul, PewDiePie, and Jeffree Star.
The popular YouTube channel has received sponsorships from Chuck E. Cheese, Nickelodeon, Walmart, Netflix, Colgate, Hasbro, and more.
Earlier this year, YouTube and its parent company Google was slapped with a $170 million fine by the FTC for illegally collecting personal data from underage viewers without their parents' consent.
