Two new laws signed by California Governor Gavin Newsom will provide financial protection to child influencers and content creators, with a percentage of their earnings placed in a trust account.
When Newsom signed the legislation, he was joined by Demi Lovato, who advocates for the rights of child actors and is releasing a Hulu documentary called “Child Star,” featuring Drew Barrymore and other stars who grew up in the spotlight. One of the new laws, AB 1880, will update a decades-old state law that sets aside 15% of child actors’ gross earnings to be placed in a trust until they reach adulthood — with that statute now applying to minors who be employed as a content worker. creators online – while the other legislation (SB 764) provides legal and financial protections for children featured in monetized content.
The potential exploitation of children, both financially and otherwise, has long been a topic of discussion when it comes to actors, musicians and others in the entertainment industry. But the world of social media has introduced a new set of challenges, controversies and concerns as children are featured in videos and photos making money for their parents.
A New York Times investigation this year described a growing industry of “child influencers,” with parents using platforms like Instagram to help their children become famous, sometimes offering exclusive images and content to would-be fans online.
“According to interviews, the child influencers can earn a six-figure income from monthly subscriptions and other interactions with followers. Some may demand $3,000 from companies for a single post,” the Times reports. “Some male followers flatter, bully and blackmail girls and their parents to get racist images, and some have been convicted of sex crimes.”
The two new laws are primarily aimed at protecting children from financial abuse in the field of social media and online platforms.
The Coogan Act for the digital age
The Coogan Act, named after child actor Jackie Coogan, was first enacted in 1939. After being discovered by Charlie Chaplin, Coogan became a star in the 1920s. But years later, when he turned 21 and after his father’s death, he discovered he had no legal right to the money he earned. According to SAG-AFTRA, the leading union for actors and other entertainers in film and television, he ultimately sued his mother and former manager for his past earnings.
“Jackie Coogan had made a lot of money and then his parents stole his money,” Lovato told Newsom as he signed the legislation. “The Coogan Act is a protection put in place for child actors in film and television…basically a percentage of your money goes into a trust and you receive that money when you turn 18. No one can touch it, but it’s yours when you turn 18.”
“This is essentially the Coogan Act for the digital age,” she said.
Since it first became law in 1939, legislation has been updated and amended to require child actors to put 15% of all their gross earnings into a trust account, with their money set aside until adulthood.
AB 1880, the new California law, will now do the same for children who work online as influencers and content creators.
“Honey, I made money with the kids”
Last year, the Georgetown Law Review published a report titled “Honey, I Made Money Off the Kids: Commercial Sharing and Protecting the Rights of Consumers and the Child Stars of the Internet.”
It discusses the phenomenon of ‘commercial sharing’, where mom bloggers and other parenting influencers post monetized content online with their children, often showing what is portrayed as their ‘real day-to-day lives’. The report describes children whose parents say they literally “grew up on their mother’s Instagram account,” posting posts that earn money that goes only to their parents.
The personal rights of these children, as well as privacy and safety issues, have also become concerns as parents hold the reins in deciding how much of their families’ lives to expose online and at what cost, the Georgetown article said.
SB 764, the new California law, provides financial and legal protections for children featured in such money-making content, requiring the parent or guardian to set aside a percentage of the earnings in trust accounts. Vloggers would also be required to keep careful accounts of such income under the new law.
“This bill would require the vlogger to maintain records, including, among other things, the number of vlogs that generated compensation and the amount deposited into the escrow account, and provide them to the minor once a month,” the bill reads. “The bill would authorize the minor to enforce these provisions in court.”
