Dive Brief:

• Consumer advocacy groups filed a complaint with the FTC Tuesday alleging that YouTube Kids—a video app aimed at young children—has unfair business practices. 
• In the complaint, the groups called the video service a “hyper-commercialized” environment that doesn't clearly distinguish ads from entertainment—a practice that has long been banned on TV. 
• Organizations in the complaint include the Center for Digital Democracy, the American Academy of Child and Adolescent Psychiatry, Campaign for a Commercial-Free Childhood, the Center for Science in the Public Interest, Children Now, and the Consumer Federation of America.

Dive Insight: 

YouTube Kids, which launched less than two months ago, aims to offer a controlled environment with age-appropriate material, for both entertainment and advertising. YouTube likely knew it would run into problems serving ads to children. In fact, the video site says it consulted with child advocacy and privacy groups during the development stages of Youtube Kids. The FTC now must decide whether it will launch a full investigation into the app.