> How can we fix this?
Educate the parents.
This stuff isn't just harmful to your wallet, it's harmful to your
child's health [1,2]. You may as well be encouraging her to smoke
cigarettes.
You're the adult in charge. Remove the demand by learning about
the many harms of exploitative online digital products for children,
the depression and mental illness, loss of focus, irritability, poor
socialisation...
Figure out how you're going to pass positive life-stance changes to
your kid. Explain to her what the glut of phones and tablets are doing
to the planet. Wean her gently off the addiction that is probably
already taking hold.
Go riding bikes, flying kites and looking at nature.
Then, slowly reintroduce technology as a useful tool under close
supervision.
[1] https://ledger.humanetech.com/
[2] https://digitalvegan.net