If you mis-tag your videos for the wrong set of audience, the FTC could charge you with compliance issues, and later, even takedown your channel. Other disciplinary actions include the implementation of fines, which could go up to $42,000 for each violation. Even though the help-centre of YouTube claims that they will look into the financial status of the content creator before the fines are decided, it still could add up to a considerable amount. Many YouTube animators are currently in a dilemma, as their work is not directed at children, but cannot be tagged as “for adults” either.
In a recent allegation, YouTube, the biggest video-sharing platform, was accused of failing to follow the regulations prescribed by the act. They were found guilty and were forced to pay a settlement of 170 million dollars to the New York Attorney General and FTC for the violations. They were also asked to take measures in order to prevent further violations of the act. Thus, YouTube has asked for a revamping of its guidelines, demanding the YouTubers to tag their creations according to their targeted audience, which should later be approved.