SACRAMENTO — In the rapidly evolving landscape of digital promulgation, the line between authentic endorsement and paid advertising has become increasingly blurred. Now, California regulators are moving to draw a hard line in the sand, considering fines of up to $5,000 per violation for social media influencers who fail to disclose when they have been compensated by political campaigns.

The Surrogate Strategy

Weeks before voting ended in California’s gubernatorial primary, Los Angeles-based influencer Shaka Smith took to Instagram to tell his more than 700,000 followers whom he was supporting and why. “Healthcare shouldn't bankrupt you, housing should not feel impossible, polluters shouldn't pass their bill to us and artists should not be replaced by AI," the vegan influencer and actor stated. "That’s why I’m supporting Tom Steyer for governor.”

Crucially, Smith started the video with a conspicuous disclaimer: “This is an ad, and honestly, I wish more political content said that first." His caption explicitly specified that he was paid by the Steyer campaign, a practice political strategists now view as indispensable. “If you’re running for president and you are not currently trying to court some of these people or lining up your own people to act as surrogates for you, you’re already behind,” noted Mike Nellis, a Democratic strategist who worked for Kamala Harris' presidential campaign.

Bypassing the Courts

California is currently one of only two states, alongside Texas, that have passed policies requiring content creators to disclose paid political sponsorships. However, the Golden State’s 2023 disclosure law has proven notoriously difficult to enforce. The state’s campaign watchdog can currently only seek a court order compelling an influencer to reveal their compensation, a cumbersome legal process that can take months to resolve.

To circumvent this bottleneck, Democratic Assemblymember Marc Berman introduced a new bill to penalize both content creators and political committees directly. The proposed legislation would grant the state’s Fair Political Practices Commission the explicit authority to levy fines of up to $5,000 per violation without needing to navigate the slow judicial system. Smith, who received thousands of dollars for his Steyer posts, adhered strictly to the disclosure requirements, noting that his audience values transparency. “They kind of trust my voice,” he said. “They knew that if I’m saying it, it’s at least something they should look into.”

Federal Attention Mounts

The debate in Sacramento is mirroring a growing national anxiety over undisclosed digital electioneering. California Sen. Adam Schiff recently introduced federal legislation aimed at regulating this burgeoning sector of political advertising, though it has yet to receive a congressional vote. Meanwhile, outside advocacy groups are aggressively urging the Federal Election Commission to pass its own binding rules regarding digital compensation.

A post by a paid influencer in 2026 can reach more voters than any billboard, even many broadcast ads...

— Senator Adam Schiff (@SenAdamSchiff) August 8, 2026

As the 2026 midterm elections loom, the convergence of influencer marketing and political campaigning has created a regulatory wild west. Whether through state-level fines or federal mandates, the era of the undisclosed political testimonial may finally be coming to an end. Read the full investigative report: Newsday / Associated Press