Illinois Law Requires Parenting Influencers To Pay Kids Up To 15% Of Gross Earnings In Trust Account

On July 1, 2024, Illinois became the first state in the US to require compensation for children featured in their parents' monetized social media content. This amendment to the state's Child Labor Law tackles the growing concern of child exploitation in the age of so-called "sharenting," where parents document their children's lives online, typically for profit.

Witnessing the potential exploitation of children on social media through various cases of research, sixteen-year-old Shreya Nallamothu took action by contacting state legislators and bringing the issue to their attention. This sparked a movement driven by other young people who understand the long-term implications of online exposure, having grown up in the digital age.

The Illinois law takes inspiration from California's Coogan Law, which protects child actors' earnings. Under this new legislation, children under 16 appearing in at least 30% of monetized content must receive 15% of an influencer's gross earnings. These earnings are deposited into a trust account managed by the parents or guardians until the child reaches adulthood.

The Rise of "Sharenting" Regulations

Illinois may be the trailblazer, but other states like Washington, Maryland, and California are considering similar laws as the "parent influencer" industry flourishes. The past decade has witnessed the rise of "sharenting" content as a lucrative online business, encompassing everything from family vlogs documenting daily life to branded campaigns featuring children promoting specific products.

In today's influencer economy, individuals with over one million followers can command upwards of $20,000 for a single sponsored post. Even creators with a smaller following, under 100,000, can still earn as much as $4,000 per post, according to Johanna Grange, co-founder of a Chicago social media marketing firm. Grange explains, "Social media has become the premium for getting your brand out to a large audience," highlighting the economic potential that has transformed social media into a viable career path for some parents, often featuring their children.

The Illinois law ignites a crucial debate about the ethics of profiting from a child's image and the long-term impact of online exposure. Social media marketing experts acknowledge the potential for exploitation but raise concerns about the law's potential reach. Brooke Raybould, a mother of four who has built a successful social media presence around her family life, said, "It felt like I had struck gold," when she began generating income from content featuring her sons. She compares her work to running a family business, where everyone contributes. Raybould emphasizes transparency and open communication with her children about their online presence.

Parental Perspectives on Content Creation

Chris Chin, a father who manages his son's YouTube channel focused on video games, views it as a way to bond with his child. "In my mind, I treat YouTube just like any other activity that a kid does," says Chin, explaining that filming sessions are typically limited to 30 minutes, akin to other recreational activities his son enjoys. He compares it to parents filming their children playing sports and sharing it online. Chin and his wife allocate a portion of their son's earnings to a trust fund and investments for his future, also using some for family activities.

Privacy vs. Financial Security: A Complex Issue

While the Illinois law primarily addresses financial rights, Shreya Nallamothu initially spoke out after witnessing potential privacy violations of young children on their parents' social media accounts. "The more I fell down the rabbit hole, I kept seeing cases of exploitation," Nallamothu said. Her concern lies with very young children who may not understand the permanence and reach of online content, nor the potential financial gain their parents might be deriving from it.

Carolyn Jarrett, co-founder of the same social media marketing firm as Grange, believes the Illinois law, though focused on finances, is a conversation starter. "Going after people's pocketbooks is a great way to get people to consider their actions," she argues. Jarrett suggests this might be a stepping stone towards a broader discussion about a child's right to privacy online.

Protecting Children in the Digital Age

The Illinois law lacks an enforcement mechanism from the state itself. However, it empowers children to take legal action against their parents if they are not properly compensated upon reaching adulthood. Experts suggest future legislation might incorporate the "right to be forgotten," allowing individuals to petition social media platforms to remove content featuring them once they reach adulthood. Content management companies also exist that focus on protecting children's privacy by refusing to reveal certain personal information about them on the internet.