Weeks before California's primary for governor concluded, Los Angeles-based influencer Shaka Smith posted a video on Instagram to tell his more than 700,000 followers who 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," Smith said. "That's why I'm supporting Tom Steyer for governor."

Smith opened the video with a clear disclaimer: "This is an ad, and honestly, I wish more political content said that first." His caption noted that the Steyer campaign had paid him.

California is one of only two states — alongside Texas — that have enacted policies requiring content creators to disclose when a political campaign compensates them for posts. Now, California is considering stricter enforcement by imposing fines on those who fail to comply.

The push comes amid a broader regulatory gap: the Federal Trade Commission has long required endorsers to disclose material connections in commercial advertising and strengthened those rules in 2023, but political speech falls largely outside the agency's jurisdiction. Meanwhile, major platforms like Meta and Google maintain political ad libraries, yet influencer posts are frequently classified as organic or branded content rather than formal political advertisements, meaning they can sidestep platform-level transparency tools designed for traditional paid ads.

Political campaigns have a long history of partnering with celebrities and high-profile influencers to court voters. Increasingly, however, they are turning to smaller creators — some with fewer than 100,000 followers — to reach more precisely targeted audiences. This trend has intensified the debate over whether existing political advertising disclosure rules should extend to content creators, who are expected to play significant roles in the upcoming midterms and the 2028 presidential election.

"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," said Mike Nellis, a Democratic strategist who worked on Kamala Harris' presidential campaign.

Concerns about transparency have been amplified by prominent cases in which influencers produced content designed to sway public opinion or votes without revealing they were paid.

In 2022, the campaign of then-Senate candidate John Fetterman paid Nicole "Snooki" Polizzi of "Jersey Shore" to record a video mocking his GOP rival for leaving New Jersey before launching his Pennsylvania campaign. In 2023, content creators were paid by a conservative-linked influencer marketing agency to defend Texas Attorney General Ken Paxton, a Republican, following his impeachment on allegations of bribery and other misconduct, according to the Texas Tribune. In neither case were the payments clearly disclosed.

Steyer, a Democratic billionaire who spent more than $215 million of his own money on his unsuccessful gubernatorial bid, drew criticism from rivals for paying content creators. He was not the only candidate in the race compensating influencers, but he absorbed the lion's share of the backlash, having already been accused of attempting to buy the election. While many creators who collaborated with the Steyer campaign disclosed their payments, the state's campaign finance watchdog is reportedly investigating several other instances in which creators allegedly did not.

California Sen. Adam Schiff introduced federal legislation on the matter last month, though it has not yet received a vote. Some outside groups are pressuring the Federal Election Commission to implement its own rule.

California's existing disclosure law, passed in 2023, has proven difficult to enforce. The state's campaign watchdog can seek a court order compelling an influencer to reveal paid arrangements, but that process can take months.

That gap led Democratic Assemblymember Marc Berman to draft new legislation that would penalize both content creators and political committees when a creator fails to disclose compensation. The bill would empower the state's Fair Political Practices Commission to fine influencers and committees for violations, enabling the commission to bypass the court process entirely. Violators could face fines of up to $5,000 per violation, according to the commission.

"Voters should have a right to know whether or not campaigns are paying for the messaging that they're seeing," Berman said.

Texas' campaign watchdog adopted a rule in 2024 requiring content creators to include disclaimers when paid for political advertisements, and the New York Legislature is weighing a similar mandate. Disclosure bills in Utah and Georgia have failed in recent years.

Smith, the Los Angeles influencer, had not yet committed to a gubernatorial candidate when a trusted friend recommended he look into Steyer. That friend had been paid to post about Steyer.

Smith was drawn to Steyer's pledge to raise taxes on billionaires and his refusal to accept donations from corporate political action committees. He ultimately produced two paid ads, both of which included the compensation disclaimers that the Steyer campaign told him were mandatory.

Smith declined to specify the exact amount the campaign paid him but said it was in the thousands of dollars. He believes the posts resonated with his followers, with only a few critics pushing back.

"They kind of trust my voice," he said of his audience. "They knew that if I'm saying it, it's at least something they should look into."

Dustin Torreverde, a content creator in Southern California who has not been paid by a political campaign for social media posts, said it is important for influencers to be transparent with their audiences. However, he cautioned that the proposed bill could place an unfair burden on creators simply trying to earn a living.

"A lot of us are very small creators," he said. "So if we were to get penalized and we have to get lawyers, stuff like that, it's going to be very difficult for us."

Adina Flores, a libertarian content creator in Northern California who votes for both parties, said influencers should be required to disclose paid arrangements and she generally supports penalties. She expressed concern that some people may accept money to post political content without thoroughly vetting the candidate.

Saurav Ghosh, a lawyer with the Campaign Legal Center, a nonprofit focused on protecting U.S. democracy, said he hopes state-level disclosure requirements will pave the way for federal rules.

"Transparency is one of the most important pillars of our election system," he said.

This story was originally featured on Fortune.com.