The new YouTube Kids mobile app targets young children with unfair and deceptive advertising and should be investigated, a group of consumer advocates told the Federal Trade Commission in a letter Tuesday. Google introduced the app in February as a 'safer' place for kids to explore videos because it was restricted to 'family-focused content.' But the consumer activists say the app is so stuffed with advertisements and product placements that it's hard to tell the difference between entertainment and commercials. Scroll down for video . The home screen comprises eight tiles showing different videos as well as four icons (pictured): a TV set for popular TV shows such as Yo Gabba Gabba, a light bulb for educational programmes, a radio for pop songs and a light bulb for popular videos . Along with favorites from DreamWorksTV, Jim Henson TV, Mother Goose Club, Talking Tom and Friends and more, your kids can watch new series from YouTube channels they already like. National Geographic Kids; Reading Rainbow; and Thomas the Tank Engine leave the world of Sodor for the first time in 70 years to travel the globe. One example is a 7-minute video of Disney's 'Frozen' characters who appear as dolls inside a toy McDonald's, eating ice cream and drinking Sprite. The activists say digital media should be subject to the same rules as television, which limits commercial content on kids' programming. 'As a consumer, you should have the right to know who is trying to persuade you,' said Angela Campbell with the Institute for Public Representation at Georgetown Law, who provided legal counsel to the coalition. In young children especially, 'it takes unfair advantage of their trusting nature and lack of experience,' she added. In a statement early Tuesday, YouTube said:  'We worked with numerous partners and child advocacy groups when developing YouTube Kids. 'While we are always open to feedback on ways to improve the app, we were not contacted directly by the signers of this letter and strongly disagree with their contentions, including the suggestion that no free, ad-supported experience for kids will ever be acceptable. ' We disagree and think that great content shouldn't be reserved for only those families who can afford it.' Since its inception in 2005, YouTube has become the world's most popular online video site, with more than 1 billion users. For parents, it's become an easy way to find Elmo song clips or full episodes of 'Barney & Friends.' But when searching for Elmo or Barney, it's easy to pull up other user-generated content aimed at adults, such as the two puppets cursing or waving guns. 'Now, parents can rest a little easier knowing that videos in the YouTube Kids app are narrowed down to content appropriate for kids,' wrote Shimrit Ben-Yair, the app's product manager, in a February blog post. According to the consumer groups' letter, the videos mingle commercial and entertainment content in ways that wouldn't be allowed on television. Search for 'My Little Pony,' for example, and the first several options are lengthy advertisements for My Little Pony Play-Doh and toy kitchen sets, including one Play-Doh segment stretching 19 minutes. 'The fact that children are viewing the videos on a tablet or smartphone screen instead of on a television screen does not make it any less unfair and deceptive,' the letter states. Groups that signed the letter were the Center for Digital Democracy, the Campaign for a Commercial-Free Childhood, American Academy of Child and Adolescent Psychiatry, Center for Science in the Public Interest, Children Now, Consumer Federation of America, Consumer Watchdog, Consumers Union, Corporate Accountability International and Public Citizen. MailOnline has learned the app will launch with content from Jim Henson TV, DreamWorks, National Geographic, and a handful of popular YouTubers and new series, such as Thomas the Tank Engine. A stock image of Bert and Ernie from Sesame Street is shown . 'Like most parents, I love helping my kids learn more about something they're interested in,' said Shimrit Ben-Yair, mother of two and YouTube Kids Group Product Manager. 'For example, right now, I spend a lot of time on YouTube with my 3-year-old son, who loves watching videos of car washes, Super Simple Songs, and about the universe. 'Today, we're introducing the YouTube Kids app, the first Google product built from the ground up with little ones in mind. 'The app makes it safer and easier for children to find videos on topics they want to explore, and is available for free on Google Play and the App Store in the U.S.' The app includes a timer to limit kids' screen time, sound settings to turn off background music and sound effects, and search settings to limit your children to just the pre-selected videos available on the home screen. Ben-Yair, the project's group product manager, told USA Today that the site has seen a 50 per cent increase in viewing time year-on-year, but that the growth has been around 200 per cent for family entertainment channels. 'Parents were constantly asking us, can you make YouTube a better place for our kids,' she said. In answer, the company has come up with an app that is simple to use and eliminates features such as viewer comments from the design. Research show that children are just three clicks away from adult content on YouTube . The home screen comprises eight tiles showing different videos as well as four icons: a TV set for popular TV shows such as Sesame Street, a light bulb for educational programmes, a radio for pop songs and a light bulb for popular videos. The categories are called: Shows, Music, Learning and Explore. 'The images are big as are the tap targets for small fingers, and since most younger children can't type they can search with voice,' Ms Ben-Yair said. If children try and search for a raunchy video, for example, the app simply blocks the request and a box that reads 'Try something else' pops up. They will be able to search for topics they are curious about though, such as spaceships and find how-to-make a volcano and maths tutorials, for example. The app will also give parents more power over their children's viewing habits. It will give them features to control the time children spend on the app so that it shuts down after a number of minutes or hours. It can be re-started again once a password is entered. There will also be an option to mute videos - a feature tested by families and NGOs. MailOnline has learned the app will launch with content from Jim Henson TV, DreamWorks, National Geographic, and a handful of popular YouTubers and new series, such as Thomas the Tank Engine. 'The news that YouTube plans to launch a kid-friendly video app will be welcomed by security savvy parents,' said David Emm, principal security researcher, Kaspersky Lab. 'Our research shows that children can be as little as three click away from inappropriate or adult content on the video platform. 'Examining YouTube's 'suggested' videos which sit visibly alongside clips or episodes of popular children's television programmes such as Peppa Pig, Rastamouse and Dora the Explorer, our researchers have found that, on average, users are just three clicks away from content better suited to a more mature audience.' The child-focused app will in part compete with Netflix's Kids service and Vine's child-friendly app showing age-appropriate video clips. The move would appear to be part of Google's strategy to appeal to younger users. YouTube is owned by the search giant. Google recently acquired Launchpad Toys, which is behind the iPad app Toontastic, and has previously announced plans to make child-friendly versions of some of its products such as Chrome and Search, as well as YouTube. Toy manufacturer Mattel has worked with Google to develop a new version of the View-Master, which will rely on a smartphone to deliver its optical trickery. The virtual reality device makes use of Google's Cardboard to deliver immersive scenes such as Alcatraz prison in San Francisco, called '360 degree photospheres'. To release the phone's virtual reality features, an Android smartphone running Mattel's app is needed. View-Master gets a make-over! Toy manufacturer Mattel has worked with Google to the new toy, which will rely on a smartphone to deliver its optical trickery. An illustration of the new device is shown . The smartphone needs to be inserted into the device along with a reel,meaning that parents will have to surrender their handsets while children play. The gadget uses augmented reality and animations to make the scenes feel immersive. Mattel says that its View-Master is an affordable platform enabling children to take 'engaging field trips' so they can explore famous landmarks, natural scenes and planets, for example, in 'photospheres'. By pairing an 'experience reel' with a smartphone, children 'will immediately experience an imaginative and interactive learning environment,' the company says. The device itself is set to be released in autumn for $30 (£20), with reels sold in themed packs of four for $15 (£10). Mattel told MailOnline the toy will come to the UK early next year.
App collate child-friendly videos, songs and educational resources . Content by DreamWorks, National Geographic and YouTubers . Claims the app has too many advertisements and product placements .