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As far as I understand it, they do. http://www.popularmechanics.com/flight/airlines/news/a26010/united-airlines-bump-passenger-rights/

And that's the point that I don't know, because I have not seen the information. IF the parents boarded with just the toddler, and the 3rd seat was originally booked for oldest son, then from the airline perspective, it is a spare seat for the no-show oldest son, and youngest child never had a...

Maybe there is a bit more to this? If husband, wife and two kids originally book 3 seats (youngest to sit on lap) - then oldest kid flies ahead on a different plane - then from the airline perspective, the oldest kid is a no-show and there is a spare seat that they can put a fare-paying...

Shocking and indefensible attitudes and actions by airline staff. What surprises me is just how thin the airline margins are, which leads them to almost routinely overbook a flight - https://techcrunch.com/2017/04/11/overbooking/ Given the above, it is maybe surprising that this kind of scene...