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New California laws require parents to allocate income for child influencers

Governor Gavin Newsom signed two measures on Thursday in California requiring parents who profit from their children’s social media posts to set aside a portion of the earnings for their minor influencers. The existing regulations in California, established nearly 80 years ago to protect child performers from financial exploitation, needed to be updated to include children gaining fame on platforms like TikTok and Instagram. Family vlogs have become a prevalent way for children to earn money, sharing intimate details of their lives with strangers for lucrative brand deals.

Under the new California laws, parents and guardians monetizing their children’s online presence will need to establish a trust for their young influencers. The legislation received bipartisan support and applies to all children under 18, similar to a law in Illinois that covers those under 16. Child influencers will be entitled to a percentage of earnings based on their appearance in videos generating a minimum revenue per view. Parents failing to comply could face legal action from their children.

Children employed as content creators on platforms like YouTube will also have a portion of their earnings deposited into a trust fund until they reach 18, following in the footsteps of child actors protected under the Coogan Law since 1939. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and singer Demi Lovato, a former child star, have expressed their support for the laws. Lovato emphasized the importance of safeguarding minors in the digital space and ensuring they are fairly compensated for their work.

Governor Newsom’s actions to protect child influencers are part of a broader effort to address the mental health impacts of social media on young individuals. Earlier this month, Newsom signed a bill restricting student access to phones in schools and prohibiting social media platforms from delivering addictive content to children without parental consent. These legislative changes aim to prioritize the well-being and rights of children working in the digital sphere.

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