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California has taken a huge step in protecting children placed in the online spotlight,videos of sex in a strip club passing two new pieces of legislation providing financial safety nets for minors starring in digital content.

Gov. Gavin Newsom was joined at the bill signing by singer and former child star Demi Lovato, who recently made headlines for her appearance in Child Star, a new Hulu documentary about youth working in Hollywood. Lovato championed California's new legislation and spoke about its importance at the event.

The first of the new laws establishes financial and legal protections for minors featured in monetized online content, mandating a percentage of earnings gathered from online "performers" be placed in a trust by their parent or guardian. The law also requires those overseeing the kid-related content to create a written statement related to the trust and to keep records on revenue generated and how much money is placed in the trust. The second law expands existing legislation protecting child performers to cover minors "employed as content creators on online platforms."

Both laws, known as SB 764 and AB 1880, are intended to bolster the California Child Actor's Bill, also known as the Coogan Law. Passed in 1939, the law requires employers of child performers to place 15 percent of the young talent's earnings into a Coogan Account (formerly called blocked trust accounts or trust accounts) in order to ensure the minor is afforded a portion of their profit once they turn 18.

"A lot has changed since Hollywood’s early days, but here in California, our laser focus on protecting kids from exploitation remains the same," said Newsom. "In old Hollywood, child actors were exploited. In 2024, it’s now child influencers."

Coogan Law isn't infallible, however, and many industry actors have found legal loopholes to the law's provisions. Most recently, advocates have noted the grey area occupied by online child performers or influencers, including children who feature predominately in family "vlog" content created by their parents. Until recently, online "stars" were not protected under current entertainment law, although some states have moved to pass their own protective legislation.

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Children "starring" in online content aren't just at risk for financial exploitation. Other advocates are ringing alarm bells on the social and mental repercussions of invasive sharing of children online, also referred to as "sharenting." In addition to financial protections at the state level, other legislators have proposed privacy laws to provide legal pathways for children who are exploited by their guardians without consent.

"In order to build a better future for the next generation of child stars, we need to put protections in place for minors working in the digital space," said Lovato.