Here's a better video:
(Some context: the FTC considers YouTube channel owners as "operators," and YouTube as a "host.")
Really, the heart of this controversy:
7:49 "A folk narrative has evolved among users where they have come to believe that they are potentially liable to the FTC for anything as small as incidental inclusion of children's characters in their videos or a mere cosmetic overlap in interests."
This is especially relevant for any Poketubers who stream Let's Plays, open packs of Pokemon cards/products, or even narrate over their replays from Pokemon Showdown. However, as Folding Ideas states earlier, a lot of the panic stems from conflating YouTube's incredibly vague definition of "for kids" with the FTC's definition, for which YouTube has yet to clarify. Here's why:
9:12 "I want to explicitly acknowledge that channel owners absolutely bear some responsibility in compliance. The solution the FTC mandated--requiring channel owners to self-identify child-directed content--is a reasonable burden. However, YouTube has additionally passed much of their burden of compliance onto channel owners as well, and have done so without giving channel owners the appropriately granular mechanisms or educational resources to make informed, conscious decisions about how data is collected from and utilized on their channels.
This burden is being borne mostly not by corporate channels such as Mattel, Hasbro, or Disney, who do not rely on YouTube for substantial revenue, nor by unarguably child-directed independent YouTube channels, but by channels producing all-ages content that they have monetized with a good-faith assumption that YouTube was telling the truth about COPPA compliance, that their channels and the ads on them were being served to an audience aged thirteen plus.
While YouTube could simply remove child-directed advertising from their behavioral ad model entirely or use their clearly demonstrated ability to discern under-thirteen viewers and disable behavioral advertising selectively at the user level, they have instead chosen to structure their system to place the burden and consequences overwhelmingly on channel operators. YouTube is in effect trying to build a scenario where they are still allowed to gather and utilize children's data in serving targeted, behavioral ads with the blame falling on channel owners for allowing them to gather that information and serve those ads."
YouTube was fined because the FTC found out they were able to collect kids' data and direct ads toward them, so we already know that YouTube is able to discern which viewers are twelve or younger. Rather than blanket restrict their access to the site or shut off all behavioral advertising to this age group, the platform is requiring the channel owners police the data collection, of which the channel owners have very little control over.
As inept as YouTube's flagging mechanisms and community-driven policing has been in the past (specifically, regarding copyright protection), I can see why content creators are scared about losing money to false-positives. However, when it comes to the even scarier aspect of being fined by the FTC ($42,000!), I don't think the content creators need to worry as much. Any complaint reviewed by the FTC will be by human analysts, not bots. Realistically, a person will be able to distinguish the difference between an all-ages channel with content that happens to also appeal to children and one that is clearly just for kids but that hasn't properly flagged itself.
Per usual, the hysterics are in full effect (see OP's video). What will actually happen will undoubtedly be nothing near the apocalyptic catastrophe foretold by clickbait artists, but rather another headache for the independent, online content creator trying to earn a few bucks on the side.