California Governor Gavin Newsom signed a new law on Saturday that imposes penalties on social media influencers who fail to disclose paid political content. The legislation marks a significant step in regulating online political advertising, empowering state campaign finance regulators to fine violators up to $5,000 per infraction or refer cases for misdemeanor prosecution.

Since 2023, California has required disclosures for paid posts related to state and local campaigns, but until now, there were no financial penalties or legal consequences for noncompliance. The new law addresses growing concerns over the rising use of social media influencers by political candidates and advocacy groups to reach younger, digitally engaged audiences. Unlike traditional campaign ads, federal rules do not mandate disclosure of paid social media posts, creating a regulatory gap that the California law aims to close.

Assemblyman Marc Berman, a Democrat who introduced the bill, cited reports from California’s recent gubernatorial primary in which candidates reportedly paid influencers to promote their campaigns without clear disclosure. One notable example was Tom Steyer, a Democratic billionaire candidate, who compensated dozens of creators to post favorable content on platforms such as TikTok, YouTube, Instagram, and Reddit. Many of these posts initially lacked the required written disclaimers, prompting complaints to the state’s Fair Political Practices Commission (FPPC).

The FPPC launched an investigation into Steyer’s campaign in May. Last week, the commission announced that Steyer had met disclosure requirements by notifying influencers of their obligations and following up to ensure disclaimers were included when unmarked posts were identified. However, at least one additional inquiry remains open.

Complaints were also filed against Steyer’s primary opponent, Xavier Becerra, who ultimately won the Democratic nomination and will face Republican Steve Hilton in the November general election.

California joins other states such as Texas, which already mandate disclosures for paid political content online. Lawmakers at the federal level and in states including New York are considering similar measures amid broader efforts to enhance transparency in digital campaign advertising. The influencer disclosure law was among 13 bills related to social media and elections that Newsom signed into law as a package on Saturday.