New California laws protect 'child influencers' from financial abuse

SACRAMENTO (KABC) -- Gov. Gavin Newsom is taking steps to protect children and teenagers who create online content on popular social media platforms like Instagram, TikTok and YouTube from financial abuse.

Joined by former Disney Channel star and singer Demi Lovato, Newsom signed two laws Thursday to ensure "child influencers" aren't taken advantage of.

In a video posted on the governor's YouTube channel, he said Assembly Bill 1880 builds off the Jackie Coogan Law. Coogan was a child actor in the 1920s.

"Jackie Coogan had a bunch of money and then his parents stole his money and he ended up suing them for it," said Lovato.

Coogan Law requires 15% of a child actor's earnings be set aside in a trust account until they become adults.

"No one can touch it but it's yours when you turn 18, and that's the safeguard that was put in place for the film and television industry for child actors," said Lovato.

AB 1880 expands the Coogan Law to include minors employed as content creators on online and social platforms, not just jobs under contract for TV and film. Earlier this month at the premiere of her new Hulu documentary "Child Star," Lovato advocated for laws to protect kids whose parents are profiting of their image and likeness.

"This basically just protects and compensates them so that when they turn 18, they can receive portions of the money and the ability to be able to say, 'You know what, I want to take my image off of the internet and, you know, kind of be forgotten.' It gives them the right to do so," she said.

Newsom also signed the Child Content Creator Rights Act into law. Senate Bill 764 requires content creators who feature minors in at least 30% of their online content set aside 65% of their earnings in a trust account until they turn 18.

"That industry has obviously evolved now with online, social media content creators," Newsom said. "There's been this glaring gap and this legislation basically closes that loophole."

In statement, the bill's sponsor, Sen. Steve Padilla said California has a long legacy of protecting child performers from financial abuse.

"It is critical we adapt these landmark protections to keep up with the natural evolution of entertainment," he said.

The Child Content Creator Rights Act will go into effect at the start of 2025.