A new Illinois law requires family influencers to give their children a hard-earned share of the content created on social media. Parents who feature their children in 30 percent or more of any online videos are now mandated to set aside 15 percent of those gross earnings in trust for their children, effective July 1, 2024. It is believed to be the first law in the United States to save young influencers from exploitation and guarantee fair compensation for their appearances.
A new law in Illinois requires family and parenting influencers to pay 15% of earnings to children featured in their content PIC.TWITTER.COM/RKTKB7AEFH
— Dexerto (@Dexerto) JULY 4, 2024
The new law focuses on popular platforms such as YouTube, TikTok, and Instagram, where family vlogging has become an industry. Having millions of followers and bagging substantial revenues from advertising, these social media influencers need to bank greatly on their children’s appearances to increase viewership and achieve higher engagement.
A young high school student, Shreya Nallamothu, was inspired to have a law passed protecting the earnings of children featured by their parents in family vlogs on YouTube, TikTok, and other platforms. She knew she had to move into action when it dawned on her that so many kids were featured prominently in those videos yet not guaranteed an eventual share of the profits.
“When I found out that users could make loads off platforms like YouTube and TikTok, so I learned these kids often are featured in videos without any promise of income, says Nallamothu. I wanted to work with Senator Koehler to protect the money these kids rightfully earned.”
It is mainly directed at ensuring that children’s rights and financial interests are secured. Children can withdraw their funds upon turning 18, so eventually, they benefit from their contributions in the child’s formative years. Secondly, the law gives young influencers a legal right to sue their parents for failing to adhere to the regulations, which were done for their protection.
The new regulations also put additional administrative pressure on family influencers. For compliance reasons, they must keep records and proof of all their children’s appearances in the videos. This extra bureaucratic system may cause the influencers to adjust the way they make content, which could result in fewer posts featuring the children to avoid the financial implications that come with them.
Reception of this new legislation has been tepid at best. Supporters of the bill have argued that it is an essential means of averting child exploitation and ensuring that fairness characterizes remunerations for any child involved in content creation. “It’s about time we address the ethical concerns in this rapidly evolving industry,” Laura Jenkins of Child Advocacy said. Children deserve to share in the profits they help generate.”
Critics point to practical difficulties and possible financial impacts on families. “It can get complicated to track exactly how much each child is earning, especially in bigger families,” replied social media analyst Mark Johnson. This could put tremendous financial and administrative stressors on influencers, ultimately damaging their livelihoods.
It will primarily be enforced through reporting measures, investigation processes, and audits. Non-complying influencers may be fined or otherwise punished. The authorities will check whether the money allocated is properly managed in a trust fund to protect the children financially.
This Illinois law follows that passed in France and reflects a broader, global trend to legislate this digital space to protect from its most vulnerable inhabitants—minors. Other jurisdictions, like California, also have moved with laws such as the expanded “Coogan Law” that requires young performers under 18 years of age to have 30 percent of earnings made placed in a trust account, which social media influencers must do.
As the legal landscape for content creators continues to evolve, this new Illinois law shall set precedence for other states to follow. It is all about significant shifts toward recognizing and addressing specific challenges with the rise of family vlogging and monetizing children’s online presence.
