Seven year old Ryan toysreview, the highest
earning youtuber on the platform, is being investigated by the Federal Trade commission.
So what exactly did Ryan do, well I’m gonna tell you in just a second but first, lemme
introduce myself. Hi, I’m charlotte, and you’re watching
informoverload. On this channel we tell you about the most interesting news stories we
find on the internet. Subscribe for news updates that don’t suck and follow the IO team on
social media. RyanToysReview is a channel with 21 million
susbcribers, and it earned an estimated 22 million dollars last year. It features Ryan
Kaji, a 7 year old boy that plays with toys. That’s right, a 7 year old boy earns more
money playing with toys in one year than you probably will in your entire lifetime. His
channel is run by his parents, Shion and Loann Guan, who hopefully are putting all the money
he’s made into a savings account. But it turns out that ryantoysreview is being investigated
by the federal trade commission for not declaring paid sponsorships, which is now illegal.
Dude. I told you so. I CALLED IT. I called it a few months ago when I told you guys that
Ryantoysreview was going to get into big trouble some day for not declaring that his videos
are paid advertisements. But because 7 year old ryan is not the mastermind behind his
channel, His parents are the ones facing possible jail time for not declaring paid sponsorships.
Ryan lives in texas with his parents in a 6 bedroom house worth close to a million dollars.
Last year he was named The highest paid youtuber by forbes magazine. But a group of concerned
parents are accusing the channel of not making it clear to his young audience that he was
playing with toys that sponsored him. Ryans audience is mainly children. And he
has a huge influence over the toy market. If ryan posts a video playing with a toy,
that toy will sell out. That’s definitely a lot of power for one 7 year old boy to have,
and advertisers definitely want to take advantage of that. One of his videos, Huge eggs surprise
toys challenge with inflatable waterslide is currently sitting at 1.8 billion views.
But according to an official complaint filed to the federal trade commission, consumer
watchdog called truth in Advertising accused ryan of not clearly disclosing paid sponsorships
from brands like walmart. Truth in advertising says that 90 percent of Ryantoysreview’s
videos include paid for product but the videos aren’t always clearly labeled as an advertisement.
This is especially a problem for a channel that is so widely watched by children. Children
are especially susceptible to advertising because their brains are not developed enough
to distinguish between a paid advert and regular content. For this reason, many governing bodies
only allow a certain amount of paid commercials during daytime television. Youtube does not
have these kinds of regulations. There are however regulations put in place to influencers
who do sponsored content for a brand. It has to be clearly stated in the video, or visible
somewhere on the screen that the video is a paid advertisement.
I’ll read out an excerpt of this complaint to you now. Truth in advertising wrote, it
is often difficult to discern innocent or sometimes not so innocent antics in Ryan Toysreview
videos from the sponsored content. And for preschoolers, its impossible to discern the
difference. Ryan Toysreview has done sponsored content
for Chuck E Cheese, Walmart, Colgate and nickelodeon. Walmart especially has worked with him to
make a line of toys called ryans world. Ryans family has responded to the complaint
in a statement. They said, the well being of our viewers is always the top priority
for us, and we strictly follow all platforms terms of service and all existing laws and
regulations, including advertising disclosure requirements.
We will keep you updated on this one as more information comes to light, for now I’m
gonna wrap up this video with some of your past comments.
Fuziphoo – I’m about to give up on getting featured.
User 005 – I love how she says ocurrr. Mike P – Stop Scaring Me Charlotte