Illinois passes the first US law to pay kidfluencers as legislation catches up to culture

#Oversharenting… Illinois became the first US state to pass a law protecting the earnings of child social-media stars and children who frequently appear in their influencer-parents’ (#sharerents) posts — think of famous family accounts like the controversial Ace Family. The law, which goes into effect next July, requires parents to set aside their kids’ gross earnings in a trust, and opens a path for kids to sue parents who keep the $$ for themselves.

• No protections: There are laws protecting child actors (the Coogan Law makes parents of child entertainers set aside 15% of their kids’ earnings), but those protections don’t extend to kids who earn money on social media. The Illinois law does. 

• Elsewhere: France is the only country that’s expanded its child-entertainer laws to social-media influencers. Washington is considering an Illinois-like law to prevent parents from exploiting their kids, and experts think California and New York could follow.

Sponsored toy unboxing… Millions are on the table for kidfluencers like 11-year-old Ryan Kaji, who earned $27M in 2021. The YouTube, Instagram, and TikTok accounts of child influencers are prime territory for advertisers like Mattel, Walmart, and Target looking to reach tween audiences. In 2021, advertisers spent nearly $3B marketing to kids — and that’s only expected to grow. But parents haven’t been required to set aside earnings from sponsorships or ad revenue for their kids, and there are also no privacy protections in place.