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Texas Ethics Commission Proposes Financial Disclosure Rule for Social Media Influencers Amid Political Ad Concerns

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Published on April 01, 2024
Texas Ethics Commission Proposes Financial Disclosure Rule for Social Media Influencers Amid Political Ad ConcernsSource: Unsplash/ Marten Bjork

In a push to bring transparency to digital political discourse, the Texas Ethics Commission is gearing up to implement a new requirement for social media influencers. According to the San Antonio Report, influencers will soon have to disclose any financial compensation they receive for political advertisements posted on their social media feeds. This move comes in response to concerns over undisclosed paid content swaying public opinion.

The proposed rule came under the spotlight following a story by The Texan, which highlighted the actions of Influenceable LLC, a company found making payments to influencers who then painted a sympathetic picture of Attorney General Ken Paxton during his Senate impeachment trial. With the adoption of this rule, violators could face fines of up to $4,000, a significant sum designed to deter covert partisan campaigns.

The notion that laws governing political advertising disclosures did not fully encapsulate the growing sphere of social media was what spurred the Texas Ethics Commission to act. "This proposed amendment would make clear that a political advertising disclosure statement is required when a person is paid to that political advertising," General Counsel James Tinsley said in a statement obtained by The Texan. The proposal will enter a 30-day public comment period before possibly being stamped into the rulebooks.

After reports by the San Antonio Report, it was revealed that Influenceable, besides aiding Paxton, had ties to figures such as Brad Parscale, former manager of Donald Trump's campaign, and was associated with payments from groups heavily invested in Texas conservative politics. While the TEC stopped short of naming Influenceable during the March meeting, their reference to a company engaging in paid political influence campaigns on social media was clear to observers familiar with the case.

Social media, as an unregulated frontier in political campaigning, has now drawn the careful eye of Texas ethicists seeking order.