California has enacted a new law aimed at increasing transparency for online influencers who promote political content, mandating stricter disclosure practices for paid posts.
According to The New York Times, prior to this legislation, influencers were required to disclose any paid posts related to local or state political races, but there were no penalties in place for non-compliance. Other states, like Texas, have also implemented similar disclosure mandates.
The newly passed legislation, known as AB 1130, empowers state regulators to impose fines of up to $5,000 for each violation of the disclosure requirements. Additionally, influencers could face criminal charges, as regulators are authorized to refer cases to law enforcement for potential misdemeanors.
The bill was catalyzed by incidents involving billionaire Tom Steyer, who funded numerous influencers to promote his campaign for the Democratic nomination for California governor earlier this year. Reports indicated that several of these influencers failed to disclose their compensated relationships with his campaign.
Governor Gavin Newsom signed this legislation as part of a wider initiative to safeguard California elections from potential interference, particularly in light of concerns regarding President Donald Trump. Democratic Assemblyman Marc Berman, the bill’s sponsor, emphasized that the motivation behind introducing the bill was to clarify existing legal ambiguities surrounding enforcement of disclosure laws.
