Advocacy Group Files FTC Complaint Against Ryan ToysReview

The consumer advocacy group Truth in Advertising has filed a complaint with the Federal Trade Commission about the world's most popular unboxing channel Ryan ToysReview for not properly disclosing sponsorships. In a filing submitted earlier this week, the group claims that Ryan Kaji, the channel's star and host, nor his parents, who run the channel, explain when their reviews are sponsored in a way that his young fanbase can understand.

Since 2015, Ryan and his parents have formed an unboxing empire, making deals with some of the world's most recognizable and powerful brands, such as Colgate, Walmart and more. However, Truth in Advertising believes that the preschool-aged audience cannot discern between sponsored content and Ryan's own reviews.

"An adult might be able to tell … when a kid influencer, like Ryan, is playing with one of his own products," Bonnie Patten, executive director at Truth in Advertising, said to The Verge. "The intended audience, which are preschoolers, has no idea that they’re being pitched a commercial. The goal is for them to say, ‘Mom, I want what Ryan has.’"

The complaint points to several videos, which include sponsorships from such brands as Hardee's and Chuck E. Cheese as examples of what Truth in Advertising calls "Deceptive Marketing." The group argues that videos like Ryan's "Ryan’s Drive Thru Pretend Play with Hardee’s New Star Pals Toys!!!” bare too close a similarity to non-sponsored videos like "Ryan Pretend Play Pizza Delivery Cooking Playhouse!!!" Released less than two weeks apart, the two videos have more than 4 million views each.

The group mostly contends that children are unable to discern the difference between advertising and organic content. They write:

Competent and reliable research makes clear that children under the age of five are unable to identify television commercials and distinguish them from other forms of content.”54 At age five, the distinction between commercials and other content is only possible because of the perceptual cues that are present in television programs, such as verbal separators (“We’ll be right back after this message”) or because commercials are shorter.

However, these types of contextual clues are left out of Ryan's and most YouTube videos. The group aims to make YouTube change these rules.

Ryan's father, Shion Kaji, disputes the group's claims, stating that they have not acted unethically. In a statement to TODAY, he said:

We strictly follow all platforms' terms of service and all existing laws and regulations, including advertising disclosure requirements. As the streaming space continues to quickly grow and evolve, we support efforts by lawmakers, industry representatives, and regulators such as the FTC to continuously evaluate and update existing guidelines and lay new ground rules to protect both viewers and creators.

All that advertising has meant big bucks for Ryan and his family. Last year, YouTube named Ryan its most highest-earning channel, pulling in more than $22 million.