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Political Campaigns Pay Influencers Millions Without Disclosure Requirements

New York Times Business •
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Carlos Espina, a progressive TikTok influencer with 14.5 million followers, endorsed billionaire Tom Steyer's California governor bid without revealing that Steyer's campaign paid him $100,000 for consulting work. Espina argued his role was advisory rather than content creation, claiming no disclosure was necessary for posts promoting the candidate.

The arrangement exposes a regulatory gap where paid political influence operates outside traditional campaign finance rules. The Federal Election Commission doesn't require disclosure for social media political advertising, while the Federal Trade Commission only mandates disclosure for commercial promotions. This allows campaigns to spend millions on influencer marketing without transparency.

Republican groups funneled nearly $875,000 to Creator Grid since late 2023 for conservative influencer outreach, while nonprofit advocacy organizations contribute additional unreported sums. California's 2024 disclosure law requires paid political messaging disclaimers, but enforcement remains inconsistent. Similar regulations in Texas have faced compliance challenges.

The practice has grown across party lines, with influencers charging $15,000 for single promotional posts. As political spending shifts toward social media's younger demographics, the lack of federal disclosure requirements creates potential for undisclosed foreign interference or special interest manipulation of electoral outcomes.