NOT KIDDING AROUND

More and more parents are creating influential video content that feature their children. What starts out as showing the children’s adorable reactions quickly turns into many parents profiting from their children’s online presence. While some may say it’s “all in the family,” many states are noticing that “sharenting,” or parents profiting from their children’s online presence, has led to a rise of privacy concerns for the children and the mishandling of earnings that the children helped to generate. To encourage families and creators to prioritize children’s well-being over profit and ensure that the young influencers have protected assets for adulthood, several states have enacted laws that shift earnings from being “family money” to the child’s rightful compensation.

In August 2023, Illinois was the first state to pass a kidfluencing law that protects the financial interests of the kids whose parents use them in family vlogs. The Illinois law now requires parents to save 50% of the earnings for every piece of content in which their child is featured. The saved earnings must be placed in a trust that the child can access at the age of 18. Otherwise, the child can sue their parents if there’s no money. See, generally, Illinois Public Act 103-0556.

In 2024, Minnesota was second in line to pass its own young influencer law targeting content creation that generates compensation at a high level, such as super influencers or family vlog channels that have millions of followers. Minnesota’s law goes further than Illinois by prohibiting any minor under the age of 14 from directly engaging in content creation work (defined as content where 30% or more of the compensated content in a 30-day period includes the name, likeness, or image of a minor with payment of at least $.01/view). If the minor(s) is featured by a content creator (such as a parent), then 100% of the proceeds from that content must be set aside for the minor(s). At age 14 or later, minors are allowed to have their own social media accounts and are entitled to receive  100% of any compensation from them. See, generally, Minn. Stat. § 181A.13 (in effect commencing July 1, 2025).

With Illinois and Minnesota laws already in place, California quickly followed suit, expanding its Coogan law to protect child influencers from financial exploitation and adding other protections, with the foregoing in effect July 1, 2025. Per the Coogan Law amendments, persons contracting with child content creators for creative services must deposit 15% of compensation directly into a child’s trust account.  Content creators featuring minors in 30% or more of compensated content (with certain minimum comp thresholds) must deposit 65% of the earnings from child content creation into the child’s trust account. It further enforces financial oversight by requiring proper management and allocation of social media earnings, preventing parents or guardians from misusing the child’s funds. California law recognizes that digital platforms are legitimate forms of media that require legal protections for the child participants. See generally CA Family Code §§ 6650-56 (Online Platforms) and 6750-53 (Coogan Law).

Actionable Steps for Families and Stakeholders

1. For Parents:
   1. Check your state’s laws; they’re in flux nationwide;
   1. Open a trust account to comply with any savings requirements;
   1. Consult a financial advisor to properly manage the earnings and ensure transparency;
   1. Prioritize your child’s privacy and well-being over profit-driven content; and
   1. Help your child engage in age-appropriate discussions about earning and savings to build financial literacy.
2. For Brands and Online Platforms:
   1. Develop guidelines to ensure sponsored content involving minors aligns with the new laws; and
   1. Collaborate with families to support ethical practices in monetized content.
3. For Advocates and Lawmakers:
   1. Educate families and stakeholders on the importance of financial protections for children; and
   1. Monitor the effectiveness of the law and address any gaps as the digital landscape evolves.

These kidfluencing laws reflect a necessary step in adapting to the challenges of the digital age. By safeguarding the earnings and rights of child influencers, the law promotes a more ethical and secure environment for young content creators. It serves as a model for protecting children in emerging industries.

By: Janice Leverett
Sr. Business & IP Counsel