Empowering “Kidfluencers:” Illinois’ Law Ensures Financial Security and Privacy Protection in the Digital Age

 By: Meg Apostolides

In today’s digital age, the childhood experience has undergone a profound transformation, largely due to the proliferation of social media platforms. This digital landscape has given rise to a new breed of public figures known as “influencers,” people who have adeptly cultivated their personal brands and amassed sizeable followings. The unprecedented access children now have to an array of social media platforms, such as TikTok, YouTube, and Instagram, affords them the opportunity to establish their own online presence and dedicated audience, which often results in substantial financial rewards. Building on the historical protection offered to child actors through Coogan’s Law, Illinois has taken a significant step forward by enacting new legislation designed to safeguard child influencers, by guaranteeing their financial security and well-being.

 

Kidfluencing” has evolved with the rise of social media platforms like YouTube, Instagram, and TikTok. Children, often with parental assistance, have become influencers and content creators, gaining fame and followers by showcasing their talents and interests. Family vlogging, toy unboxings channels, and brand collaborations have played significant roles in this trend. While this trend has become financially lucrative, it has sparked concerns about child labor laws, privacy, and parental responsibility.

 

Child influencing is a multifaceted issue, encompassing both children who maintain their own social media accounts, often managed by their parents due to age restrictions, and family accounts where the practice of “sharenting” has gained prominence. “Sharenting,” a term coined to describe the phenomenon where parents share their children’s personal lives online, raises significant privacy concerns and ignites debate about whether children can truly provide informed consent for this type of publication.

 

Illinois took a significant step this summer by becoming the first state to enact legislation aimed at ensuring that children featured in online content receive a fair share of the profits generated by their digital presence. This law amends the state’s Child Labor Law to extend protection to children featured in online content and is slated to come into effect in July 2024. The law is designed to safeguard the interest of children who are prominently featured in their parents’ online content, specifically those who appear in at least 30% of the content over a 30-day period within the state of Illinois. It imposes a requirement on parents to allocate a portion of their earnings from the content if it generates a minimum of 10 cents per view and children are entitles to half of the earnings. These earnings must be depositedinto a trust account, where they will remain until the child reaches the age of 18.

 

The emergence of family related influencing and the expansiveaccess that children have to social media has heightened the necessity to safeguard children’s privacy, as well as their financial security. On the financial front, child influencers possess the capacity to generate substantial income. Therefore, ensuring equitable compensation for their work is of paramount importance. Drawing inspiration from the well-established Coogan’s Law in the entertainment industry, Illinois has recently enacted legislation that introduces notable changes with the potential to significantly impact “kidfluencers” and the broader influencer marketing landscape. This legislation in Illinois is primary aimed at bolstering the protection of child influencers by mandating that vloggers, who are typically parents or guardians, establish trust funds for the money the children earn. This measure ensures that a portion of the earnings generated from a child’s participation in influencer activities is set aside to secure their financial future. While this provision undeniably provides a safety net for child influencers, it simultaneously places a substantial compliance and record-keeping burden on the parents. Parents of child influencers in Illinois are now obligated to meticulously track and report compensation details as well as the extent of their child’s involvement in their content.

 

As a result, this legislation is poised to exert a discernible influence on content creation strategies. Vloggers will now need to adhere to specific criterial governing minor’s involvement and compensation. Importantly, there are legal repercussions for bloggers who fail to comply with these requirements, which may encompass potential lawsuits and penalties. Additionally, this law seeks to promote transparency by mandating that vloggers share these financial records with the minors involved, ultimately benefiting both child influencers and their guardians.Furthermore, the Illinois’ legislation has the potential to establish a noteworthy precedent for other states or jurisdictions to introduce similar regulations, potentially ushering in a greater degree of standardization within the influencer industry. While the primary objective of this legislation is to safeguard the welfare of “kidfluencers,” it simultaneously introduces a complex framework of compliance and legal obligations that could significantly reshape the way child influencers and their parents operate.

 

In conclusion, Illinois’ new legislation for child influencers marks a significant advancement in safeguarding children’s financial security and rights in the digital age. By extending protections similar to those for child actors, the state addresses privacy concerns, promotes transparency, and sets a potential precedent for other states. This move reflects a growing awareness of the complexities surrounding child influencers, aiming to create a fairer and more secure environment for young content creators.

Student Bio: Meg Apostolides is a second-year law student at Suffolk University Law School. She is a staff member for the Journal of High Technology Law. Meg received a Bachelor of Arts degree in International Studies and Spanish with a concentration in Latin American Politics from the College of the Holy Cross in 2020.

 

Disclaimer: The views expressed in this blog are the views of the author alone and do not represent the views of JHTL or Suffolk University Law School.

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