From recent stats Instagram was shown to be THE number One app that gathers so much private information (more than Facebook itself). This is wrong on so many levels. Facebook, as a company, is probably also pretty low on the stakes of user trust anyway. Why do you think they want to do this, for the kids? If many adults (myself included) have already deleted their Instagram accounts over privacy trust issues with Facebook, this just does not look like as a good idea.
Targeting online products at children under 13 is fraught not only with concerns about privacy, but legal issues as well. In September 2019, the Federal Trade Commission fined Google $170 million for tracking the viewing histories of children to serve ads to them on YouTube, a violation of the Children’s Online Privacy Protection Act (COPPA). TikTok precursor Musical.ly was fined $5.7 million for violating COPPA in February of 2019.
Parents would have "transparency or control," the company says.