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Illinois Leads in Protecting Child Influencers, Requires Parental Compensation

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Illinois Leads the Way in Protecting Child Influencers: A Game-Changer for Small Businesses

Instead of working to solve problems related to wonton violence in Chicago and corruption, Illinois has set a groundbreaking precedent by becoming the first state to legislate compensation protections for minors featured in online content. This legislation, signed into law by far-left Governor J. B. Pritzker, amends the state's Child Labor Law and aims to safeguard young influencers. Small businesses utilizing family-based vlogging and influencer marketing must stay updated, as this legislation could potentially spread nationwide.

The Story Behind the Legislation

The impetus for this legislation came from 16-year-old Shreya Nallamothu of Normal, Illinois. Troubled by the extensive online sharing of children's private moments through family vlogs, Nallamothu took action by writing a letter to State Senator Dave Koehler. Her efforts have resulted in a significant milestone for the protection of young influencers.

Compensation Guidelines and Trust Funds

Under the new state law, starting July 1, 2024, Illinois parents will be required to set aside a portion of their child's earnings from online content in a trust fund. The amount will be based on the duration the child appears in the video. If the child appears for half the video's duration, they should receive a quarter of the funds. If they appear in the entire video, they should receive half. However, this requirement only applies if the child appears on screen for over 30% of vlogs throughout the year.

Protecting the Rights of Child Influencers

Drawing a parallel between child influencers and child actors, Senator Koehler emphasized the importance of not forgetting about the child. This protective measure is especially crucial as parent vloggers often share personal aspects of their lives on platforms like YouTube, with their children as the primary subjects. Previously, there was no legal obligation to share the proceeds with these young influencers.

A Progressive Step Towards Ensuring Ethical Practices

The new law in Illinois mirrors the 1936 Jackie Coogan's Law, which was enacted after child actor Jackie Coogan was defrauded by his own parents. This legislation mandated setting aside 15% of a child actor's earnings in a trust fund accessible at the age of 18. While other states have considered similar laws, Illinois is pioneering in implementing comprehensive regulations to protect child influencers.

Implications for Small Businesses and Influencer Marketing

This groundbreaking legislation presents both a challenge and an opportunity for small businesses. It emphasizes the ethical considerations that must be taken into account in influencer marketing, particularly when minors are involved. It highlights the need to ensure that the rights of child influencers are always protected. As laws evolve to keep up with technology, discussions about the appropriateness of sharing children's lives online, especially when they may not be old enough to provide true consent, are reignited.

In conclusion, Illinois has taken a significant step in protecting child influencers and setting new standards for small businesses utilizing influencer marketing. This legislation emphasizes the importance of ethical practices and the need to prioritize the rights of young influencers. As the legal landscape continues to evolve, it is crucial for small businesses to stay informed and ensure compliance with regulations to foster a safe and responsible digital environment for child influencers.

Conclusion: The Impact of Child Influencer Legislation on New LLCs

The recent legislation in Illinois protecting child influencers signals a significant shift in the legal landscape of influencer marketing. For new LLCs in Illinois, particularly those that leverage family-based vlogging and influencer marketing, this change presents a critical challenge and opportunity.

Adapting to New Legal Standards

New LLCs must adapt to these evolving legal standards to ensure compliance. This involves understanding the intricacies of the law, such as the requirement to set aside a portion of a child influencer's earnings in a trust fund. It also entails keeping abreast of similar legislative moves that may occur in other states.

Ethical Considerations in Influencer Marketing

The new legislation underscores the importance of ethical considerations in influencer marketing. New LLCs must ensure they prioritize the rights of young influencers, especially when they may not be old enough to provide true consent.

Opportunities for Responsible Business Practices

Despite the challenges, this change also presents opportunities. By adhering to these new standards, new LLCs can demonstrate their commitment to responsible business practices. This could enhance their reputation and foster trust with their audience and partners.

In conclusion, the new child influencer legislation in Illinois is a game-changer for new LLCs. It demands a shift in how businesses approach influencer marketing, emphasizing the need for ethical practices and the protection of young influencers' rights. As the legal landscape continues to evolve, staying informed and ensuring compliance is crucial for new LLCs to thrive in this new era of influencer marketing.

Article First Published Here: https://smallbiztrends.com/2023/08/illinois-takes-lead-in-protecting-child-influencers-mandates-parental-compensation.html
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