As Google explained last month, on apps that opted-in to qualify for the Family section appear in the category. Searching for apps while in Family will weed out all other apps from the search results as well, providing one place to find kid-friendly Android software.
Google is also cracking down a little on in-app purchases for such apps, saying "For apps and games that are labeled for ages 0-12 on the star badge, a password is required for in-app purchases, even if you don't usually require one." This will help prevent kids from racking up bills by limiting their purchases so that parents approve them first.
The new Family part of the Play Store adds a unique section based on recognizable characters, as well as a dedicated Disney grouping. Kids can click on Elmo or Dora the Explorer, for example, and see content related to them such as apps, games, books, movies and more.
From an advertising perspective, developers can still include them.
Google, however, expects them to be consistent with the content rating of the Family app. Apps that have advertising will be clearly labeled but Google makes it clear that has no control over the content of those ads.
Let's hope we don't see Elmo turn even more red than he already is due to an adult-themed advertisement in one of the kid's apps.