Parents Must Save Earnings for Child Influencers Under California’s New Legislation

In a significant move to protect young social media influencers, California has passed two new laws requiring parents to set aside a portion of earnings generated by their children through online content. 

Signed by Governor Gavin Newsom, these measures aim to address the growing concerns around child vloggers financial abuse and social media influencer exploitation.

California, which led the nation in protecting child performers 80 years ago, is now updating its laws to keep up with the evolving digital landscape. The existing laws, which once applied to children in Hollywood, now extend to young influencers on platforms like TikTok, Instagram, and YouTube, where brand deals and online fame can generate substantial income.

Protecting Child Influencers from Financial Risks

Family vlogs, a popular genre where parents document their children’s lives, have become a booming industry, generating millions of dollars in revenue. 

However, many children featured in these vlogs often lack legal protection, leaving them vulnerable to financial risks for young influencers. The new California laws seek to mitigate these risks by ensuring that a portion of the income from these vlogs is saved for the children themselves.

Governor Gavin Newsom highlighted the need for these laws, saying, “A lot has changed since Hollywood’s early days, but here in California, our focus on protecting kids from exploitation remains the same. In 2024, it’s child influencers who are at risk. Today, we’re taking steps to ensure that children’s earnings from social media are safeguarded.”

The legislation mandates that a certain percentage of child influencers’ earnings must be set aside in a trust, similar to the Coogan Law, which was originally designed to protect child actors in traditional media. This update extends those protections to cover children in the digital age, addressing the challenges posed by child protection in influencer marketing.

Industry Response and Future Implications

Many industry experts believe that these laws are long overdue. The rise of family-style vlogs and social media stardom for young children has created a space where kids are exposed to the public in ways that were unimaginable just a decade ago.

 “Parents sharing intimate details of their children’s lives, from first periods to potty training, might not fully grasp the long-term consequences,” stated a leading child protection advocate.

While the laws have been widely praised, some critics argue that they don’t go far enough in addressing the broader issue of social media influencer exploitation. They note that while financial protection is crucial, mental and emotional well-being must also be considered, as young influencers often face immense pressure to maintain an online persona.

The Road Ahead

Looking to the future, experts predict that these new regulations may inspire similar legislation in other states and countries, as the global conversation around child protection in digital spaces intensifies. 

As the influencer industry continues to grow, particularly in regions like Dubai where tax-free real estate and investment opportunities have surged, ensuring the protection of young influencers’ rights remains a global concern.