Anne Bucher  |  August 23, 2023

Category: Labor & Employment

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A young girl live streaming, representing the new child influencer compensation law.
(Photo Credit: Kaspars Grinvalds/Shutterstock)

Child influencer compensation law overview:

  • Who: Illinois has passed a law that entitles certain child influencers to compensation for their appearances in monetized online platforms. 
  • Why: The law is intended to protect child influencers and ensure they are paid for their work. 
  • Where: The child influencer compensation law was passed in Illinois.

A new Illinois law entitles children who were featured in monetized online platforms, including video blogs (“vlogs”), to compensation for their work, ABC News reports.

The child influencer compensation law is expected to take effect July 1, 2024.

A 15-year-old initially brought the issue to the attention of Illinois Sen. David Koehler, who sponsored a bill to ensure youth are compensated for their work as child influencers on monetized platforms.

The rise of social media has given children new opportunities to earn a profit, Koehler said in an emailed press release. “Many parents have taken this opportunity to pocket the money, while making their children continue to work in these digital environments.”

Shreya Nallamothu, who is now 16, says she first became concerned about the number of children featured in family vlogs as she scrolled social media platforms during the pandemic. She reflected on her family’s home videos that sometimes featured “embarrassing stuff,” and says she’s “so glad those videos stayed in the family.”

Realizing the effect vlogging could have on the children featured in the videos, she decided to write a letter to Koehler, asking him to consider legislation that would protect child influencers.

Child influencers will be entitled to compensation based on amount of participation in monetized content

Under the new child influencer compensation law, parents in Illinois must set aside 50% of earnings for content into a trust fund that a child influencer can access at age 18, depending on how much the child contributed to the content. For example, a child who is in 100% of a video is entitled to 50% of the earnings, and a child who is in 50% of a video is entitled to 25% of the earnings.

To qualify for compensation, child influencers must appear on the screen for more than 30% of the content in a 12-month period, Yahoo News explains.

If the content creator fails to set aside child influencer compensation, the child can sue for payment.

Illinois is the first state to pass a law entitling child influencers to compensation for their contribution to monetized content.

Social media influencers have come under fire recently for their role in hyping FTX yield-bearing accounts without disclosing that they were being paid to promote the investments

What do you think about the new Illinois child influencer compensation law? Join the discussion in the comments!

@topclassactions

15-year-old David Koehler says “Many parents have taken this opportunity to pocket the money, while making their children continue to work in these digital environments.” What are your thoughts?! #news #childinfluencer #teeninfluencer #children #childinfluencers #childcontentcreator #legal #legalnews

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