Recently, a California Senator is proposing legislation to ensure child influencers’ earnings are secure. The bill is aimed at protecting minors—under the age of 18—from mismanagement and misuse of profits they earn through social media endorsements.
Sponsored by Senator Connie Leyva, the proposed amendment to the existing Child Actor’s Bill would reportedly target large social media platforms such as YouTube, Instagram, and Twitter. The bill requires these platforms to take responsibility for the management of earnings from musical, video, or photographic content created by children under their jurisdiction.
For many child influencers, sponsorships of products and branded content can often offer tremendous financial rewards, particularly in cases where these endorsements and promotions can be worth tens of thousands of dollars. However, the new proposed bill is primarily for the protection of minors, ensuring these earnings are legally safeguarded.
Under the new bill, a trustee is to be appointed to manage the financial assets of each child influencer. This trustee would evaluate payments, seek input from the parent(s) and/or legal guardian(s) of each child influencer, and ultimately ensure the proper management of funds for each of them.
These trustees have the responsibility of performing their duties in the best interest of the child’s welfare. They are also required to monitor the strategies of product endorsement, responsible spending, and professional tax management.
If passed into law, the legislation also provides legal protections to any platform that appoints a trustee to manage the funds. It also clarifies which companies will be responsible for any disputes or claims arising as a result of the transactions mediated by them.
Senator Leyva’s proposed bill is a welcomed edition to existing regulations, providing much-needed oversight and protection of child influencers who often have no legal protection against financial exploitation. With this new addition, it is expected that child influencers will finally be able to reap the rewards associated with their work, without falling victim to any kind of mismanagement.