Gov. Newsom joined by Demi Lovato as he signs California bills protecting child influencers

Two new laws signed by California Gov. Gavin Newsom will offer financial protections to child influencers and content creators, setting aside a percentage of their earnings in a trust account.

As Newsom signed the legislation, he was joined by Demi Lovato, who has championed rights of child actors and is releasing a Hulu documentary called "Child Star" featuring Drew Barrymore and other stars who grew up in the spotlight. One of the new laws, AB 1880, will update a decades-old state law that sets aside 15% of child actors' gross earnings to be placed in a trust until they're adults — having that statute now apply to minors employed as content creators online — while the other legislation (SB 764) puts legal and financial protections in place for children featured in monetized content.

The potential exploitation of children, whether financial or otherwise, as long been a topic of discussion as it relates to actors, musicians and others in the establishment entertainment industry. But the world of social media has introduced a new set of challenges, controversies and concerns as children are featured in videos and photos that earn money for their parents. 

A New York Times investigation this year detailed a growing "child influencer" industry where parents are using platforms like Instagram to help their kids reach stardom, sometimes offering exclusive images and content to so-called fans online.

"The child influencers can earn six-figure incomes from monthly subscriptions and other interactions with followers, according to interviews. Some can demand $3,000 from companies for a single post," the Times reports. "Some of the male followers flatter, bully and blackmail girls and their parents to get racier images, and some have been convicted of sex crimes."

The two new laws primarily focus on protecting children from financial abuse in the sphere of social media and online platforms. 

The Coogan Law for the digital age

Named after child actor Jackie Coogan, the Coogan Law first went into effect in 1939. After being discovered by Charlie Chaplin, Coogan became a star in the 1920s. But years later, upon turning 21 and following the death of his father, he learned he had no legal right to the money he made. He ended up suing his mother and former manager for his past earnings, according to SAG-AFTRA, the leading union for actors and other entertainers in film and television. 

"Jackie Coogan had made a bunch of money and then his parents stole his money," Lovato said, speaking to Newsom as he signed the legislation. "The Coogan Law is a protection put in place for child actors in film and television... basically, a percentage of your money goes into a trust and you receive that money when you turn 18. No one can touch it, but it's yours when you turn 18."

"This is essentially the Coogan Law for the digital age," she said.

Since it first became law decades ago, the legislation has been updated and amended to require that child actors have 15% of all their gross earnings placed into a trust account with the money set aside until they reach adulthood.

AB 1880, the new California law, will now do the same for children working as influencers and content creators online.

"Honey, I monetized the kids"

Last year, the Georgetown Law Review published a report called "Honey, I Monetized the Kids: Commercial Sharenting and Protecting the Rights of Consumers and the Internet's Child Stars."

It discusses the phenomenon of "commercial sharenting," with mommy bloggers and other parenting influencers posting monetized online content featuring their children, often showing what's portrayed and marketed as their 'real everyday lives.' The report describes children whose parents say they have literally "grown up on their mom's Instagram account," with posts earning money that goes only to their parents. 

The personal rights of these children, as well as privacy and security issues, have also become concerns as parents hold the reigns in deciding how much of their families' lives they want to show online and at what cost, according to the Georgetown article.

SB 764, the new California law, puts financial and legal protections in place for children featured in such money-earning content, requiring the parent or guardian to set aside a percentage of the earnings in trust accounts. Vloggers would also have to keep a careful accounting of such earnings under the new law. 

"This bill would require the vlogger to maintain records, including, among others, the number of vlogs that generated compensation and the amount deposited into the trust account, and to provide them to the minor once per month," the legislation reads. "The bill would authorize the minor to enforce these provisions in court."