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In a significant move to protect young digital creators, the California State Legislature today passed Senate Bill 764, the Child Content Creator Rights Act. Authored by Senator Steve Padilla (D-San Diego), this groundbreaking legislation aims to ensure that minors who appear in online content receive fair financial compensation for the use of their image.
“California is the epicenter of the global entertainment industry,” Senator Padilla stated. “The standards we set here become the blueprint for the nation and indeed, the world. We need to update our hard-fought labor protections and safeguard the financial future of these 21st-century performers.”
The bill comes at a crucial time, as the influencer economy continues to expand rapidly. Goldman Sachs Research reported that the influencer economy was valued at approximately $250 billion in 2023 and is projected to nearly double to $480 billion within the next five years. The proliferation of social media platforms, especially those focused on short-form video content, has made it easier than ever to monetize content, leading to a surge in aspiring content creators, including minors.
Senate Bill 764 mandates that content creators featuring minors in at least 30% of their content must allocate 65% of a proportionate percentage of total gross earnings to a trust account, which the minor can access upon reaching adulthood. This legislation is inspired by the Coogan Act of the 1930s, which established financial protections for child actors. However, the Coogan Act only applies to child performers under contract, leaving many young social media stars without similar protections.
The bill has garnered widespread support from youth advocates and the California business community. Chris McCarty, Founder of the advocacy group Quit Clicking Kids, which played a key role in the passage of similar legislation in Illinois, praised the measure: “It is incredibly heartening to see politicians across the aisle join together to protect child safety online. If we can’t make child safety a priority, then we face a political problem much bigger than any individual bill.”
Ronak Daylami, a policy advocate with the California Chamber of Commerce, also expressed strong support: “For 85 years, Coogan accounts have protected child actors against exploitation. In the years since, family vloggers and content creators have seen significant success based on their increased popularity on social media and online platforms, often for content involving children. CalChamber supports SB 764 because it provides needed protections for children who are filmed and posted on social media without access to the profits that were generated by their likeness and participation. We are grateful for Senator Padilla’s leadership and his partnership with us in addressing this important issue.”
SB 764 passed the Senate with a unanimous bipartisan vote of 37-0, following its approval in the Assembly on Monday with a bipartisan vote of 77-0. The bill now awaits Governor Gavin Newsom’s signature to become law.
