We have regulation on advertisements to children? That's a little surprising.
Kids are better at filtering in some ways.
One crazy belief is not sign of universal insanity. Perhaps though it is a sign of susceptibility, which is what we seem to be talking about.
This wasn't the case with other things, though. I remember really liking Care Bears back in the 80's. My father was appalled when he took me to a movie - he said it was basically an add to get kids to buy the new line of toys. My brother, 11 years younger than I, had the same sort of thing with Power Rangers and then Pokemon. I don't have children and am not quite sure what the current modern version of this is, but I'm sure it is there. Adult versions abound. These aren't the things we can spot so easily, especially as children with little world experience.
Minecraft, Pokemon Go, Star Wars...