And it could affect the strategies of all creators of children's videos on YouTube, including large companies such as Mattel and Hasbro, according to federal officials.
Google also said in its blog post that, beginning in four months, data collected from all children's content will be treated as though it were coming from a child viewer.
Some critics, including a number of FTC commissioners, are saying the settlement with YouTube doesn't go far enough.
YouTube will also be forced to require makers of children's videos to declare whether their content is aimed at kids, a signal YouTube will use to suspend targeted advertising toward children.
For years, privacy advocates have complained that YouTube inappropriately targets children with advertising on its platform.