Your favorite Instagram or TikTok creator might soon think twice before taking money to back a politician. California lawmakers are pushing hard to punish influencers who pocket campaign cash but forget to tell their audience they are reading a paid script.
If you scroll through social media during election season, you already know the blurred lines between authentic political takes and sponsored propaganda. Campaigns are ditching traditional billboards for micro-influencers. These creators command high levels of trust from tight-knit communities. That trust has a price tag, and California wants to make sure everyone sees the receipt.
The Shift From TV Ads to Feeds
Politicians figured out that a traditional broadcast spot gets skipped or ignored. An endorsement from a trusted digital creator hits differently.
During California's recent gubernatorial primary, billionaire candidate Tom Steyer and other hopefuls funneled campaign money directly to content creators to boost their visibility. Los Angeles-based creator Shaka Smith, who boasts over 700,000 followers, openly endorsed Steyer after accepting thousands of dollars to produce sponsored posts. Smith made sure to state clearly at the start of his video that it was an ad.
Not everyone followed those rules. State watchdogs are actively looking into several instances where creators allegedly took political money while masking advertisements as organic opinions.
Why Current Disclosure Laws Fall Short
California passed a disclosure requirement back in 2023, but it had zero teeth. If an influencer hid a financial backing, the state's Fair Political Practices Commission had to launch a formal court proceeding to force a public disclosure. That process drags on for months. By the time a judge orders a correction, the election is already over and voters have cast their ballots based on compromised information.
To fix this loophole, Democratic Assemblymember Marc Berman introduced a sharper bill. This new measure gives the state commission direct authority to slap non-compliant creators and political committees with fines reaching up to $5,000 per violation. No slow court orders. Just immediate financial penalties.
The Creator Dilemma
Independent creators are split down the middle on how this affects the digital economy.
Some argue that transparency is non-negotiable. Adina Flores, a Northern California libertarian creator, points out that casual influencers sometimes take cash without doing proper homework on candidate platforms. Mandatory disclosures keep the audience alert.
Other creators worry about the heavy administrative burden. Smaller accounts operate on tight margins. Dusten Torreverde, a Southern California creator who steers clear of political sponsorships, notes that even the threat of an investigation or a steep fine could scare micro-creators away from legitimate work or drag them into costly legal battles.
The Broader National Picture
California isn't operating in a complete vacuum, but federal rules remain nonexistent. Texas introduced a similar disclosure mandate for creators back in 2024, and New York lawmakers are weighing parallel bills.
On the federal level, California Senator Adam Schiff introduced the PAID Act, aiming to force clear disclaimers across national platforms under Federal Election Commission oversight. Yet, gridlock in Washington means state capitals are taking the lead on policing the internet.
If you create content, review your sponsorship contracts immediately. If you consume political commentary online, check the captions before you let a favorite creator shape your vote.
