In a potentially precedent-setting move, California’s governor Gavin Newsom has signed two pieces of legislation that give stronger financial protection to kids and teens making online content.
Bill AB 1880 extends Coogan’s law to cover kid influencers. Part of Coogan’s law says that parents or guardians must establish a trust account to manage the wages paid by studios and production companies to child performers, including actors, singers and dancers. Parents also have a fiduciary duty to manage those accounts until the child reaches the age of majority. And the employer is required to deposit 15% of the child’s earnings into the trust account.
SB 764, which will become law on January 1, 2025, takes a more modern look at compensation and trust payments for online “vloggers” (defined as kids content creators on platforms like YouTube and TikTok, as well as kids who lease their likenesses and stories). Under this bill, vloggers will receive 65% of their gross earnings paid into a trust account. And monthly earnings are calculated based on the following criteria:
(a) (1) At least 30 percent of the vlogger’s compensated video content or the vlogger’s compensated image content included the likeness, name or photograph of the minor
(b) The number of views received per image or video segment on any online platform met the online platform’s threshold for compensation or the vlogger received actual compensation for image or video content equal to or greater than US$0.10 per view.
(c) The vlogger received actual compensation for image or video content of at least US$1,250 in the month.
“In old Hollywood, child actors were exploited,” said Governor Newsom, who signed the legislation yesterday. “In 2024, it’s now child influencers. Today, that modern exploitation ends through two new laws to protect young influencers on TikTok, Instagram, YouTube and other social media platforms.”
Singer and former Disney Channel child actor Demi Lovato (Camp Rock, As the Bell Rings), who has championed the legislation, was at the signing (pictured) and praised the bills. “In order to build a better future for the next generation of child stars, we need to put protections in place for minors working in the digital space,” she said. “I’m grateful to Governor Newsom for taking action with this update to the Coogan Law that will ensure children featured on social media are granted agency when they come of age, and are properly compensated for the use of their name and likeness.”
Some of the most popular child influencers could be earning as much as eight figures for their work, and a lack of legal protection for these young creatives has been an industry concernfor some time. Forbes has estimated that well-known influencer Ryan Kaji of Ryan’s World (37.9 million YouTube subscribers) earned US$35 million last year.
SAG-AFTRA also shared its support for the new legislation, which goes further to protect more young talent. “Regardless of medium or platform, all child performers must be strongly protected,” said Duncan Crabtree-Ireland, the union’s national executive director.