On February 23, 2015, Google released a child-appropriate version of YouTube for kids. The new child-appropriate platform offers parents an environment for their young ones free from targeted ads and the collection of any personal information--for now at least. Industry experts are still worried about what privacy and blurring issues the site may raise.
The new children's version of YouTube will of course have to comply with the Children's Online Privacy Protection Act (COPPA), and one can be certain that the Federal Trade Commission will be taking a gander at Google's entry into the children's media market.
To read more about the launch of YouTube for kids and the legal concerns, read this article in Law 360 that mentions CARU's role in children's privacy as well as blurring issues.