Well you read this story wrong. Yeah you should feel sympathy for people who just want to make videos but have the risk of going bankrupt for life because of the FTC because of Youtube's mistake. People could literally go bankrupt or have their entire livelihood ruined because of this. This is not a good thing. $42,000 per video. Do you realize how much money that is? This is all youtube's fault and content creators have to deal with their consequences.
The thing is that the legal code is full of stuff like this. Here are the federal guidelines for obscene material:
- Whether the average person, applying contemporary adult community standards, finds that the matter, taken as a whole, appeals to prurient interests (i.e., an erotic, lascivious, abnormal, unhealthy, degrading, shameful, or morbid interest in nudity, sex, or excretion);
- Whether the average person, applying contemporary adult community standards, finds that the matter depicts or describes sexual conduct in a patently offensive way (i.e., ultimate sexual acts, normal or perverted, actual or simulated, masturbation, excretory functions, lewd exhibition of the genitals, or sado-masochistic sexual abuse); and
- Whether a reasonable person finds that the matter, taken as a whole, lacks serious literary, artistic, political, or scientific value.
By the letter of the law, pretty much any pornography could fall under these guidelines. Really almost anything that contains any sexual reference could be, due to the language like "average person" or "reasonable person" or "community standards". The penalty for this is not just fines, but up to 5 years in prison per offense. So in theory you could spend the rest of your life in prison for it.
Of course, that doesn't actually happen in practice. So maybe we should see how this is actually enforced before going straight to the assumption that innocent people are going to be bankrupted.