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Illinois Law Requiring Compensation for Children Featured in Online Content

Posted by Salina CanoyJul 01, 2024

Illinois Public Act 103-0556 (SB1782), effective July 1, 2024, amends the Child Labor Law in Illinois by introducing rules specifically addressing minors' involvement in vlogging activities and their right to compensation for such involvement.

APPLICABILITY

In what circumstances does the Act apply?

The Act applies to any individual or family that (a) creates video content in Illinois (b) for an online platform (c) in exchange for compensation and (d) that features minors under the age of 16, if, at any time in the previous 12 months:

·       The likeness, name, or photograph of the minor appeared in at least 30% of the person's compensated video content in a 30-day period.

and

·       The vlogger received at least $0.10 per view, or otherwise received sufficient views to qualify for compensation on an online platform.

Does the Act apply to a minor's own vlogging?

No, the Act does not apply to minors creating and posting their own content. Many social media platforms have age restrictions, however, that do not allow minors to set up accounts and post videos in their own name. This forces minors to post under their parent or family member's account, which would make the content subject to the Act.

Does the Act apply to mobile apps?

The Act applies to any “online platform” which is defined to include any public-facing website, web application, or digital application, including a mobile application.

What if the content creator or account holder is not the parent of the minor?

The Act applies to an individual or family and provides a definition of “family” that is broad and includes any close relationship considered the equivalent of a family. The Act also applies if the account is in the name of a proprietorship, partnership, company, or other corporate entity assuming the name or identity of a particular individual or family for the purposes of content creation.

How do you determine whether the minor is in 30% of the content?

The percentage is calculated by comparing the time the likeness, name, or photograph of the minor visually appears or is the subject of an oral narrative in a video segment, as compared to the total length of the segment.

  

REQUIREMENTS

What is required if the Act applies?

If the Act applies, you are required to keep records, provide the records to the minor, and to compensate the minor by depositing money in a trust account for the benefit of the minor when they reach 18 or are emancipated.

What records must be kept and provided to the minor?

For each year the Act applies, the vlogger must document:

·       the name and proof of the age of the minor

·       the number of vlogs that generated the minimum compensation

·       the total number of minutes of the vlogs for which the vlogger received compensation

·       the total number of minutes each minor was featured in the vlogs

·       the total compensation generated from vlogs featuring a minor

·       the amount deposited into the trust account for the benefit of the minor

What happens if the vlogger does not maintain and provide the records?

If a vlogger does not maintain the required records, the minor may sue the vlogger to enforce the Act.

How much of the earnings must be put in the minor's trust account?

If the vlog only has one minor that meets the Act requirements, then the minor receives half of the earnings of the percentage of the vlog that features the minor. If the minor is featured in the whole vlog, the minor would get 50% of the total earnings of the vlog. If the minor is in 30% of the vlog, the minor would receive 15% of the total earning of the vlog.

If the vlog includes 2 or more minors, the percent of earnings that would have gone to one minor (as described above) would be divided equally among all the minors, regardless of the differences in percent of content provided by each of the individual minors. If 4 minors are in 100% of a vlog, the four minors would equally split 50% of the earnings, or each get 12.5% of the earnings, even if one of the minors was only in 30% of the vlog.

What are the requirements for the trust account?

The trust account created for the minor must:

·       Be available only to the minor

·       Be held by a bank, corporate fiduciary or trust company

·       Become available to the minor at 18 or if the minor becomes emancipated

·       Meet the requirements of the Illinois Uniform Transfer to Minors Act

What remedy is provided if the minor is not compensated?

If a vlogger knowingly or recklessly violates the Act, the minor can bring an action against the vlogger seeking actual and punitive damages, and attorney and litigation costs.

MISCELLANEOUS

Does a minor in a vlog need a work permit?

No. The Act provides an exception to the employment certificate requirement for minors engaged in vlogging.

Are there any requirements for the online platform?

No. The Act only applies to the vlogger and the minor.

Why was this Act introduced?

An Illinois teen brought the idea of the Act to Illinois Senator David Koehler based on her concerns about exploitation of kids in family vlogging.  The law was modeled after the 1936 Coogan's Law in California, which was passed after parents stole all the earnings of a Hollywood silent actor discovered by Charlie Chaplin.