FEC Proposes Regulation To Ensure Transparency For Digital Political Ads

The origins of digital political ads can be shrouded in mystery.

The Federal Election Commission is now taking steps to regulate such ads, requiring the disclosure of paid advertising on leading social and streaming platforms, reported Axios. Transparency measures have often been stressed in more traditional advertising, but less so online.

As the financial and political stakes escalate, so do the ads.

Ad Impact estimated in mid-October that the top five issue categories in 2022 drew more than $103 million in ad spend — just on Facebook and Google. The issues including fundraising, California Prop 27, abortion, healthcare and internet regulation.

On Nov. 10, the agency released a proposed regulation on digital ad transparency. There are two big takeaways: Ads must disclose the entity paying for them. And paid social-media endorsements and influencer-marketing efforts, not just banner ads and videos, would be subject to the new rule. 

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A bipartisan team of FEC commissioners, Shana Broussard, a Democrat, and Allen Dickerson, a Republican, were said to draft the proposal. The agency has been working for 11 years to update digital disclosure requirements without new regulations enacted.

The proposed FEC rule would apply disclosure requirements to all "communications placed or promoted for a fee on another person's website, digital device, application, service, or advertising platform."

The agency is scheduled to vote on the measure next week — and is forgoing a public comment period on the regulation, according to Republican commissioner Sean Cooksey, who opposes the measures.

However, Erin Chlopak, senior director for campaign finance at the Campaign Legal Center, told Axios she was "happy to see the commission taking this issue up again."

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