California gubernatorial hopeful Tom Steyer is staunchly defending his campaign’s use of paid social media influencers amid an investigation by state election regulators. The inquiry focuses on whether online creators failed to adequately disclose sponsored political content.
Steyer, a billionaire and former hedge fund manager, has been discreetly enlisting TikTok and Instagram influencers for months. These influencers have been posting videos that cast his candidacy in a positive light as he competes in a crowded Democratic race to succeed outgoing Governor Gavin Newsom.
The campaign’s strategy has now drawn the attention of California’s Fair Political Practices Commission. This follows complaints suggesting that some influencers shared content supporting Steyer without clearly indicating they were compensated by his campaign.
In response, Kevin Liao, a spokesperson for the Steyer campaign, defended their actions in a statement to The California Post.
“In accordance with state law, payments for creator content are clearly outlined in our campaign finance reports, and we ensure that creators we work with directly are aware of their disclosure obligations. Therefore, we believe these complaints are without merit,” Liao stated.
He further explained, “Creators earn a living by producing content. Our campaign supports compensating individuals fairly for their time and efforts and has accordingly paid creators to develop content.”
The controversy erupted after a report revealed several influencers had posted seemingly organic videos praising Steyer while receiving campaign-linked payments behind the scenes, according to the Sacramento Bee, who first reported on the memo detailing the strategy.
One of those creators, influencer Jason Chu, who has roughly 130,000 followers across TikTok and Instagram, uploaded a February video examining Steyer’s background as a Wall Street billionaire turned environmental activist, the Washington Post reported.
In the clip, Chu questioned whether Steyer was someone who had recognized the damage caused by his investment career and was now attempting to reverse it through politics.
What viewers were not told, according to campaign finance filings, was that Chu had allegedly received $2,000 for “online communications” work through a media contractor tied to the Steyer campaign, according to The Post.
California law adopted in 2023 requires online creators who are paid to support or oppose political candidates to disclose that relationship in their posts.
The Fair Political Practices Commission confirmed this week that it has opened an investigation into “potential violations” of the state’s political advertising disclosure rules.
Critics argue the strategy was intentionally designed to make Steyer appear to have a spontaneous grassroots following online.
“He is trying to create the appearance of a grassroots movement, but artificially, in a way that’s very deceptive,” creator and Steyer critic Beatrice Gomberg told The Washington Post. Gomberg supports rival Democratic candidate Xavier Becerra.
The investigation comes days after previous reports revealed Steyer’s campaign had offered some creators as little as $10 per video to push issue-based content aligned with his platform while avoiding direct mentions of Steyer himself.
Internal campaign guidance reportedly instructed creators to focus on topics including taxing the wealthy, climate change, artificial intelligence regulation and abolishing ICE while keeping content “casual” and “relatable.”
The campaign also allegedly encouraged influencers not to mention Steyer directly in account bios to avoid appearing overly political or automated.
Some creators who declined the offers blasted the tactic as exploitative and misleading.
San Francisco-based creator Serabeth Mullaney previously described the outreach as “predatory,” arguing that financially struggling influencers were being encouraged to create political content without adequate transparency.
Steyer has heavily leaned on his personal fortune throughout the race, pouring more than $130 million into his gubernatorial campaign — vastly outspending competitors in both parties.
Before entering politics and climate activism, Steyer amassed his wealth running Farallon Capital Management, the San Francisco hedge fund he founded in 1986.
