California Cracks Down on Influencers’ Undisclosed Political Payments: Face $5,000 Fine, Criminal Prosecution

Governor Gavin Newsom has signed a new California law imposing criminal and civil penalties on social media influencers who fail to disclose payments for political content, marking a significant step toward transparency in digital campaign advertising.The law, AB 1130, was signed Saturday as part of a broader package of election-related measures. Mr. Newsom’s office said the bills are designed to “protect elections in California from interference and political meddling.”While California already required influencers to disclose paid political posts, the state previously had no way to enforce violations. Under the new law, regulators can fine influencers up to $5,000 per violation and refer cases to law enforcement for potential misdemeanor charges under the Political Reform Act of 1974, according to The New York Times. Traditional news organizations can accept payment for advertising from campaigns without triggering the law’s provisions on disclosure.Assembly member Marc Berman, the bill’s sponsor, said times have changed as political campaigns seek to reach voters. “As more candidates pay influencers to post content supporting their campaigns, it is imperative that voters have the right to know whether or not that content is organic and authentic or paid political messaging,” he said in a statement last month as the bill headed to the governor’s desk.The law arrives as influencers play an increasingly central role in political campaigns, with candidates and outside groups turning to social media personalities to reach audiences who rely on platforms like TikTok and Instagram for news. Some creators are compensated directly for political content, while others post about candidates voluntarily.Researchers have found that transparency matters deeply to audiences. A report published last month by the Information Integrity Institute at the University of Tennessee’s College of Communication and Information surveyed about 1,000 U.S. social media users and found that “participants who placed a greater value on authenticity were also more likely to support disclosure when political content was paid for.”Associate professor Benjamin Horne, who worked on the study, said the risk isn’t limited to obvious misinformation. “One of the more real problems is not just you see something that’s completely false or you see something that’s completely true, but you see inauthentic or misleading propagandist-type opinions pushing people’s perspectives in different directions,” he said in a blog post about the findings.Institute director Catherine Luther said she views the legislation as part of a positive trend. “Any movement towards transparency in online information is a good thing,” she said on the blog. “I think it can only be beneficial for democratic societies.”The push for stronger enforcement gained urgency earlier this year during billionaire Tom Steyer’s unsuccessful bid for the Democratic nomination for California governor. Mr. Steyer, who spent more than $200 million on the race, paid dozens of influencers to post favorable content about his campaign — including a reported $100,000 to Texas-based creator Carlos Eduardo Espina — but many posts initially failed to disclose the payments, according to a May report by the Los Angeles Times.According to campaign finance filings covering January through April 18, Mr. Steyer paid more than $123,400 to at least eight influencers. Per The New York Times. Additionally, Mr. Steyer’s campaign paid more than $870,000 to Group Project Digital, a digital media agency that recruits creators to post daily videos about him. The agency’s original listing offered creators $10 per video, but was updated last week to $1,000 a month. The revised listing now also requires creators to disclose the payments.Mr. Steyer ultimately finished third in the Democratic primary, held on June 2.

California Cracks Down on Influencers’ Undisclosed Political Payments: Face $5,000 Fine, Criminal Prosecution

California Cracks Down on Influencers’ Undisclosed Political Payments: Face $5,000 Fine, Criminal Prosecution

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