Successful influencers know that the digital world is always evolving. Influencers who last also stay current on the laws that govern social media as they too evolve. This post explores the top three legal issues that influencers should be aware of in California: child influencer laws, the rise in consumer class-action lawsuits, and heightened FTC scrutiny.
#1: Child influencer laws in California
California has introduced new laws to protect child content creators, or “kidfluencers.” These laws expand upon the state’s Coogan Law, which was originally designed to safeguard the earnings of child actors. Notable changes include:
- Trust account requirements: Parents featuring their minor child in a significant portion of monetized content must set aside a portion of the child’s earnings in a trust account.
- Coogan Law expansion: For minors in contracted roles, 15% of earnings must be paid directly into a verified Coogan trust account by employers. Governor Gavin Newsom recently expanded this law to include roles on online platforms like YouTube.
- “Rights Act” for non-contracted children: Creators featuring their children in 30% or more of monetized content without a formal contract must deposit 65% of gross earnings into a trust fund.
- Record-keeping: The law requires parents to maintain detailed records of the child’s content appearances and earnings.
These measures align with the state’s broader goals of child labor laws.
#2: Surge in consumer class-action lawsuits
In 2025, there is a notable increase in consumer class-action lawsuits targeting influencers and brands. These lawsuits present a new legal risk beyond traditional government regulation. Consumers file these lawsuits against influencers and companies for deceptive marketing practices, seeking substantial damages. Allegations often involve violations of FTC Endorsement Guides and California’s consumer protection statutes. Influencers, agencies, and brands share responsibility for compliance and plaintiffs can hold both parties jointly liable for infractions.
This trend underscores the importance of adhering to advertising guidelines and maintaining transparency in influencer marketing.
#3: Heightened FTC scrutiny of disclosures and practices
The FTC continues to push for transparency in influencer marketing, with updated guidelines that place greater responsibility on influencers and brands.
- “Clear and conspicuous” disclosure: Disclosures of material connections must be upfront and not hidden in hashtags or descriptions, including both audio and visual disclaimers for videos.
- Honesty and evidence: Influencers must provide truthful endorsements and avoid misleading claims, with comparative claims backed by proven data.
- Fake reviews and review manipulation: Practices like soliciting reviews only from satisfied customers or incentivizing the removal of negative reviews are likely deceptive and in violation of the FTC Act.
It is wise for influencers to stay informed as the legal environment in California continues to evolve. By understanding these new laws and guidelines, influencers can protect themselves from legal risks and maintain the trust of their audience.
Disclaimer: The legal issues surrounding social media are evolving. It is recommended that influencers consult with a legal professional to ensure full compliance with California and FTC regulations.