California Governor Gavin Newsom has signed legislation that allows regulators to fine online influencers up to $5,000 for each violation when they fail to disclose that they are being paid to post about politics.
The bill, AB 1130, also allows regulators to refer influencers to law enforcement for potential misdemeanours. California already required disclosure for influencers posting about state or local races, but there were no fines or criminal penalties when someone failed to disclose.
According to The New York Times, billionaire Tom Steyer, who unsuccessfully campaigned for the Democratic nomination for California governor earlier this year, paid dozens of influencers to post about his campaign online, and many of them did not initially disclose the payments.
Newsom signed the legislation as part of a broader package of bills that his office said will protect against potential election interference from President Donald Trump. The bill's sponsor, Democratic Assemblyman Marc Berman, said he introduced it after realising there was "a bit of ambiguity about the [existing] law and how it's enforced."
Texas also requires disclosure for paid political content, and other states are considering similar regulations.