🧸 First US kidfluencer law
Hey Snackers,
There are floor seats, there are nosebleeds, and then there are listening seats? Ticketmaster has apparently been selling “listening only” tickets for Beyoncé’s tour, describing them as having no view of the stage. That’s a new one.Â
US stocks sank last week as investors worried about sticky inflation, rising bond yields, and stubbornly strong economic data, which could mean more Fed rate hikes. Hong Kong stocks entered bear-market territory as concern grows over China’s underwhelming recovery.
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.Â
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.
Law lags culture… The first gen of kids to have everything from their baby pics to prom videos posted online is growing up. For child actors, the Coogan Law was revamped in the ’90s following infamous parent-child income spats like Macaulay Culkin’s. Now the social-media gen is taking initiative to protect their income — and privacy. A grassroots movement to hide kids’ faces and keep them off screen has been gaining momentum, and Illinois’ new law was proposed by a 15-year-old.
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Coming up this week
If AI is a gold rush… some think Nvidia’s selling shovels. The chip titan’s stock 3X’d this year (hello, trillion-dollar club) as orders flooded in for its supercomputing chips. Elon Musk said Tesla would take as many as Nvidia could churn out. Saudi Arabia is also hungry for the $40K H100 chip, which Nvidia described as the first “designed for generative AI.” In its most recent report, Nvidia’s sales were down 13% from last year as demand for its gaming chips sagged. But it gave an upbeat forecast, and analysts expect strong growth when it reports Wednesday.Â
Retail’s mixed bag… Consumers have been leaning toward spending on experiences, but thrifty shoppers are still seeing fit to add new wardrobe fits. Retail sales rose in July, boosted by clothing outlets. Last week, discount icons TJX (TJ Maxx, Marshalls) and Ross crushed expectations as consumers treasure-hunted for $10 sundresses and discount Levi’s. This week, Urban Outfitters and Abercrombie & Fitch are expected to report trendy revenue gains on the year, but Gap, Kohl’s, and Macy’s are forecast to show sagging YoY sales.
Stories we’re watching
The driving (work)force… The 150K-member United Auto Workers union is keeping its foot on the gas in contract negotiations with the Big Three automakers: GM, Ford, and Stellantis. The UAW will hold strike-authorization votes this week (FYI, it’s expected to pass). Though the union historically strikes against one company — including a 40-day, $3.6B strike against GM in 2019 — this year it has said a strike against all three is possible if there’s no deal by September 14. A 10-day work stoppage could cost manufacturers, workers, and the auto industry $5B.Â
Lights, camera, and (maybe) action… Hollywood studios finally offered up a new deal for writers last week after more than three months of the WGA’s strike. Highlights of the deal (pushed by Netflix and Disney) include AI protections, greater streaming transparency, and higher pay. TBD if the WGA will accept (negotiations are expected to continue this week). The writers’ strike, coupled with the screen actors’ strike that started in July, has cost California's economy $3B+. Studios are feeling the content crunch as production of movies and hit TV series (like “The Last of Us”) is stalled.
Last week's highlights
NYTvGPT: The New York Times is considering a copyright suit against OpenAI that could be the biggest AI legal battle yet, NPR reported. As trust in the tech wanes, companies are being more cautious about how they use it.Â
EVin: After its SPAC debut, EV maker VinFast’s valuation sped past GM and Ford, but has since fallen. SPAC’d EV startups like Lordstown Motors and Nikola have seen values drop 90%+ as the crowded lot fills up.
Unbound: China’s reopening — expected to net a huge economic rebound — has gone from meh to worse. Youth unemployment hit a record 21% in June, and US multinationals have reported hits to their China earnings.
What else we’re Snackin’
High: More states are rethinking their recreational-pot-smoking laws as the rise of high-potency THC strains spark health concerns. In Colorado, pot-related calls to poison-control centers have nearly tripled since 2014.Â
Pride: Target said backlash over its Pride items hurt sales while AB InBev took a hit after its Bud Light promo with transgender influencer Dylan Mulvaney. Both companies faced criticism from the LGBTQ+ community for their responses.Â
Grill: Walmart-owned Sam's Club is doing a major revamp to take on long-time rival Costco. First order of biz: slashing the price of its iconic hot-dog-and-soda combo to $1.38 (Costco sells at $1.50).
This Week
Monday: Earnings expected from Zoom
Tuesday: BRICS summit begins. Earnings expected from Baidu, Macy’s, Lowe’s, Coty, Urban Outfitters, and Dick’s Sporting GoodsÂ
Wednesday: Earnings expected from Nvidia, Peloton, Kohl’s, Foot Locker, Williams-Sonoma, Bath & Body Works, and Abercrombie & Fitch
Thursday: Ukraine Independence Day. Earnings expected from Burlington, Dollar Tree, TD Bank, Petco, Weibo, Build-A-Bear, Ulta, Intuit, Gap, and Nordstrom
Friday: Fed Chair Powell to speak at the Jackson Hole Economic Symposium
Authors of this Snacks own shares of AB InBev, Disney, GM, Mattel, Nvidia, Tesla, Ulta, and Walmart
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