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It's used correctly here. Advertising to children is a moral hazard because the money used to buy the advertised product comes from the parents, not the children (mostly). The point of advertising is to inform and influence a consumer, but in this case, you're manipulating someone who likely doesn't understand the costs involved, who in turn is meant to influence the actual consumer/purchaser, who are themselves cut out of the loop and potentially buying something they don't understand.