California Governor Signs Bill Protecting Child Influencers; Mandates Parents Set Aside Percentage of Child’s Earnings & More

Demi Lovato joined California Governor Gavin Newsom as he signed legislation created to protect child influencers.

Beware reality TV parents, your days monetizing your kids on social media are numbered.

On Thursday, California Governor Gavin Newsom signed two bills that will protect kids who perform in online content from financial abuse, according to a press release from the governor’s office. Demi Lovato championed the legislation in association with the advocacy organization Quit Clicking Kids and joined the governor for the bill signing.

“A lot has changed since Hollywood’s early days, but here in California, our laser focus on protecting kids from exploitation remains the same,” the governor said. “In old Hollywood, child actors were exploited. 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.”

The first bill, SB 764, establishes financial and legal protections for California minors featured in monetized online content by mandating that their parent or guardian set aside a percentage of their earnings in trust accounts, according to the press release. The second bill, AB 1880, expands the Coogan Law to include minors who are employed as content creators on online platforms.

Named after child star Jackie Coogan— whose parents spent the millions of dollars he earned during his career in silent films and left him penniless as an adult– The Coogan Law was signed into law in 1939 and mandates that 15 percent of a child performer’s earnings be saved in a protected trust that they can access when they reach adulthood. 

Now, the same provisions will apply to parents who feature their kids in monetized social media content. (A large majority of reality TV stars who are parents frequently feature their children in their monetized social media content, whether it’s on YouTube, Instagram, TikTok, etc. Many also secure brand deals for their children, or feature their children in content made as part of a brand deal.) 

 

 
 
 
 
 
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A post shared by Jamie Otis Hehner (@jamienotis)

“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,” Demi said in the press release. “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.”

 

 
 
 
 
 
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A post shared by Isaac Rivera (@isaacelliottr)

California is the second state to legislate financial protections for child influencers. Back in July, an Illinois law went into effect requiring that children ages 16 and under be compensated if, within a 30-day period, they are in at least 30% of a video or online content for which an adult parent or caregiver is being paid, according to WRTV Indianapolis. Whoever makes the videos in which the child appears is responsible for setting aside gross earnings in a trust account the child will receive at age 18.

Just as their parents are using social media to shill meal plans, supplements, fast-fashion brands and more, the children of reality TV stars are also being brought into the paid-promotion business. The Kardashians, who built their empire monetizing everything, feature the family’s youngest members in promotional posts. Vanderpump Rules star Scheana Shay has featured her daughter Summer Moon Honey Davies in paid posts, like a Gonna Need Milk campaign back in June. 

Scheana’s ‘Vanderpump Rules’ co-star Lala Kent also frequently features her daughter Ocean in her monetized social media campaigns. 

 

 
 
 
 
 
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A post shared by Lala Kent (@lalakent)

While the new law will help kids featured in social media campaigns in California, the law does not apply to child reality TV stars. Currently, there are regulations for money earned by kids featured on reality TV shows, and parents are able to spend their kids’ money as they see fit.

This topic came into the press during the most-recent season of Mama June: Family Crisis, in which Alana “Honey Boo Boo” Thompson accused her mother Mama June Shannon of spending most of the money Alana earned during her appearances on the family’s reality TV shows, as well as special appearances on shows like The Masked Singer and Dancing With the Stars: Juniors. The money— which Alana made while she was under the age of 18— was accessible to June, who claimed she spent most of the money on taking care of Alana. June revealed that Alana had about $33,000 left in her account, despite having earned hundreds of thousands of dollars over the course of her childhood.

“I’ve been on TV since I was six,” Alana responded, “and now, I have what to show for it?”

(Photos: California Governor’s Office, Instagram)

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