Lee Fang: Is your favorite influencer’s opinion bought and sold?

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Your addictive doomscrolling on X, TikTok or Instagram may also be the latest nexus for millions of dollars in secret political corruption.

Over the last month, the problem has come into sharp relief. Newly surfaced documents show that more than 500 social media creators were part of a covert electioneering effort by Democratic donors to shape the presidential election in favor of Kamala Harris.

Payments went to party members with online followings but also to non-political influencers — people known for comedy posts, travel vlogs or cooking YouTubes — in exchange for “positive, specific pro-Kamala content” meant to create the appearance of a groundswell of support for the former vice president.

Meanwhile, a similar pay-to-post effort among conservative influencers publicly unraveled. The goal was to publish messages in opposition to Health and Human Services Secretary Robert F. Kennedy Jr.’s push to remove sugary soda beverages from eligible SNAP food stamp benefits.

Influencers were allegedly offered money to denounce soda restrictions as “an overreach that unfairly targets consumer choice” and encouraged to post pictures of President Donald Trump enjoying Coca-Cola products. After right-leaning reporter Nick Sortor pointed out the near-identical messages on several prominent accounts, posts came down and at least one of the influencers apologized: “That was dumb of me. Massive egg on my face. In all seriousness, it won’t happen again.”

In both schemes, on the left and the right, those creating the content made little to no effort to disclose that payments could be involved. For ordinary users stumbling on the posts and videos, what they saw would have seemed entirely organic.

In the influencers’ defense, they didn’t break any rules — because none exist.

We used to demand minimal levels of transparency for paid endorsements. In the 1970s, the U.S. enacted a series of reforms requiring new disclosures for those seeking to shape elections. Television, radio and print ads for political campaigns must specify the sponsors, and billboards or pamphlets sent by mail also feature small-print reminders of the groups responsible.

Social media, however, is the Wild West of advocacy. Although influencers are generally required by the Federal Trade Commission to disclose paid endorsements for products, politics are a different matter. Most election-related communications fall under the jurisdiction of the Federal Election Commission. But the FEC commissioners debated the issue without resolving the problem. A proposal floated in December 2023 to enact basic rules for influencers made no headway.

There was a momentary push in 2017 for stricter social media disclosures in the political realm. The discovery of foreign influence campaigns aimed at the 2016 presidential election set off alarm bells. As a result, the major tech platforms began working to track and close so-called sock puppet accounts operated by the Russian and Chinese government. Yet few reforms were institutionalized, and as more and more Americans get their news from social media, the problem remains largely unchecked.

That has left the entire social media landscape vulnerable to hidden manipulation, where money from interest groups or corporations or even rich individuals can silently shape what appears to be authentic discourse. This corrosion of reality undermines the very foundation of democratic deliberation.

Democracy requires a minimal level of shared facts and good-faith engagement. Secret payments in support of candidates or causes destroy both, corrupting the “marketplace of ideas,” where the best arguments are supposed to naturally rise to prominence through competition. If genuine public sentiment becomes indistinguishable from manufactured opinion, we lose our collective ability to recognize the truth and make informed decisions. Everything from local zoning decisions to soda bans to presidential elections can be skewed.

Former Supreme Court Justice Louis Brandeis famously noted that “sunlight is … the best disinfectant.” Transparency in political influencing requires regulatory action. The Federal Election Commission must act and establish clear disclosure requirements for paid political communications on social media. Congress should expand the definition of electioneering and political-payola disclosure to include influencer content. Platforms must implement more robust paid content and disclosure tools.

Most importantly, we as citizens must demand reform. We should support influencers who voluntarily disclose their financial relationships and conflicts of interests, and question those who don’t.

If we fail to address the growing influence of secret money in the digital public square, the risk is dire: We will surrender our collective decision-making ability and our democracy to whoever can afford to purchase the most compelling voices.

Lee Fang is an independent journalist. He publishes an investigative newsletter at leefang.com. He wrote this column for the Los Angeles Times.

Apple posts stronger-than-expected Q2 results but stocks slides after-hours

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By MICHAEL LIEDTKE and BARBARA ORTUTAY

Apple’s revenue for the fiscal second quarter topped Wall Street’s expectations, but investors are waiting to hear what CEO Tim Cook has to say about the impact of President Donald Trump’s tariffs and economic uncertainty on its business.

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The Cupertino, California-based company earned $24.78 billion, or $1.65 per share, in the first three months of the year, up 4.8% from $23.64 billion, or $1.53 per share, in the same period a year earlier.

Revenue rose 5.1% to $95.36 billion from $90.75 billion.

Analysts, on average, were expecting earnings of $1.62 per share on revenue of $94.19 billion, according to a poll by FactSet.

The numbers for the January-March period provide a snapshot of how Apple was faring before President Trump’s unveiling of sweeping tariffs in April that rattled the financial markets amid fears a trade war would reignite inflation and shove the U.S. economy into a recession.

Apple’s reliance on Chinese factories to make its iPhones and other devices thrust the technology trendsetter into the crosshairs of Trump’s trade war. The exposure caused Apple’s stock price to plunge 23% shortly after the president announced the severity of the reciprocal tariffs, temporarily erasing $773 billion in shareholder wealth in the process.

Most of those losses have since been recovered after Trump temporarily exempted iPhones and other electronics from the reciprocal tariffs, but Apple’s stock remains down by nearly 5% since the April fusillade of tariffs.

Besides the trade war, Apple has been hurt by its inability to live up to its own hype surrounding artificial intelligence features on the iPhone 16 lineup that came out last fall.

The technology wasn’t ready when the iPhone 16 went on sale. Some AI features have rolled out in parts of the world as part of software updates, but Apple still hasn’t been able to live up to its original promise to make Siri smarter and more versatile. The missteps prompted Apple to pull advertising campaigns promoting AI breakthroughs on the iPhone, although the company still intends to release more features powered by the technology at some point.

Apple had been counting on its late entry into the AI craze to revive demand for the iPhone after last year’s sales dipped 2% from 2023’s levels. Apple said Wednesday that its phone sales climbed 1.9% to $46.84 billion for the first three months of the year. Wall Street had expected iPhone sales of $45.62 billion.

When Trump initially indicated his 145% tariffs on Chinese-made goods would apply to the iPhone, U.S. consumers rushed to stores to buy new devices rather than risk prices spiking higher after the duties began driving up costs. But the flurry of panic buying won’t show up until Apple reports its results for the April-June quarter this summer.

Trump’s trade war has ramped up the pressure on Cook to work the same diplomatic sleight of hand that enabled the iPhone to avoid being stung by the China tariffs that the president imposed during his first administration.

Cook signaled his intention remain on good terms with Trump by arranging private meetings with him and personally donating $1 million to the president’s second inauguration ceremony before sitting on the dais when Trump was sworn into office on January 20. Apple subsequently announced plans to invest $500 billion in the U.S. while hiring 20,000 workers during the next four years.

Trump’s trade war also is prompting a push to Apple to shift all the production of the iPhones that it sells in the U.S. from China to India, where the company has been building up its supply chain for the past seven years, according to a recent story in the Financial Times. But the complicated logistics of making such a huge move likely couldn’t be completed until next year, at the earliest, leaving Apple vulnerable to the vagaries of Trump’s trade war.

Apple’s stock fell $5.81, or 2.7%, to $207.51 in after-hours trading.

Amazon posts solid first quarter earnings growth, but outlook is tempered by tariff uncertainty

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By ANNE D’INNOCENZIO

NEW YORK (AP) — Amazon posted higher first-quarter profits and sales, but the online juggernaut issued a tempered sales outlook amid uncertainty about President Donald Trump’s tariffs.

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The Seattle-based company said that it earned $17.13 billion, or $1.59 per share, for the quarter ended March 31. That compares with $10.43 billion, or 98 cents a share, in the year-ago period.

Revenue rose 9% to $155.7 billion, up from $143.3 billion from the year-ago period.

Analysts were expecting $1.37 per share on revenue of $155.147 billion, according to FactSet.

The company expects sales in the second quarter to be in the range of $159 billion to $164 billion.

Amazon’s results come as Trump’s erratic trade policies — including 145% tariffs on China — have paralyzed businesses and threatened to raise prices and hurt consumers. However, big companies like Amazon are expected to navigate the climate better than small retailers. Experts say that retailers are heading into key shipping periods, starting with the back-to-school season, and many have paused some shipments, creating worries there could be shortages starting later this summer.

Amazon shares fell nearly 3% in after-hours trading on Thursday.

Trump administration asks Supreme Court to strip legal protections from 350,000 Venezuelan migrants

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WASHINGTON (AP) — The Trump administration on Thursday asked the Supreme Court to strip temporary legal protections from 350,000 Venezuelans, potentially exposing them to being deported.

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The Justice Department asked the high court to put on hold a ruling from a federal judge in San Francisco that kept in place Temporary Protected Status for the Venezuelans that would have otherwise expired last month.

A federal appeals court had earlier rejected the administration’s request.

President Donald Trump’s administration has moved aggressively to withdraw various protections that have allowed immigrants to remain in the country, including ending TPS for a total of 600,000 Venezuelans and 500,000 Haitians. TPS is granted in 18-month increments to people already in the U.S. whose countries are deemed unsafe for return due to natural disaster or civil strife.