When a popular influencer posts a glowing review of a skincare product or a travel destination, many followers assume it is an honest, unpaid opinion. A new legislative proposal in Panama aims to change that assumption forever. Walkiria Chandler, a deputy in the country’s legislative body, has introduced a preliminary bill that would require content creators and influencers to clearly disclose when they receive payment or benefits for promoting products or services on social media.
The proposal has sparked intense debate across digital platforms, with creators and influencers sharply divided over what the rules would mean for their work. Some see it as a necessary step toward consumer protection. Others worry about government overreach into creative expression.
Chandler, who represents a district in Panama City, told reporters that the core objective is straightforward. She wants viewers to know when a recommendation is actually a commercial transaction.
“It is very simple. What we are seeking is that if an influencer receives money to promote a product or service, they say so, because the consumer has the right to be informed and to know when a product or service is being sold to them,” Chandler said.
influencer advertising regulation has become a hot topic globally, and Panama is now joining the conversation.
More Than Just Cash Payments
The bill’s language extends well beyond direct monetary compensation. Chandler emphasized that the proposal covers a wide range of benefits. “We specify that a payment does not necessarily mean a check or a bank transfer. It could also be a trip, an invitation to an event, or the well-known ‘exchanges.’ All of that counts as a form of payment. What we are looking for is to make transparent what influencers do,” she explained.
This broad definition could have major implications for the many Panamanian creators who regularly accept free products, travel perks, or event access in exchange for content. Under the proposed law, every one of those arrangements would need to be clearly labeled as advertising.
The proposal now heads to the Panama National Assembly for formal consideration. If it passes through the legislative process, it would establish new guidelines for identifying paid promotional content across all digital platforms.
No New Bureaucracy, No Gag Order
Chandler pushed back against early criticism that the bill would create red tape or stifle free speech. She insisted the proposal is designed to be light-touch and focused on transparency rather than punishment.
“This will not create any type of bureaucracy or new positions. It is also not a gag law. What we want is for freedom of expression to be maintained, but for people to report when they are receiving compensation for promoting a product or service,” she stated.
The deputy drew a direct comparison between digital creators and traditional media outlets. Newspapers, television stations, and radio broadcasters in Panama already follow strict rules about labeling paid content and sponsored segments. Chandler questioned why the same standards should not apply online.
“This is something that newspapers, television stations, and radio stations already do. Why not do it in the digital environment as well?” she asked.
For context, traditional media in Panama operates under advertising disclosure rules that have been in place for decades. The rise of social media has created a regulatory gap that this bill seeks to close. Deputy Walkiria Chandler has been active on consumer protection issues throughout her tenure, and this proposal represents her latest effort to address gaps in existing law.
Trust as the Central Issue
At the heart of the debate is a question about the nature of the relationship between influencers and their audiences. Chandler argued that the trust followers place in creators makes undisclosed advertising particularly dangerous.
“What we do not want is for the trust that an influencer generates to lead a user to believe that it is a spontaneous recommendation, when in reality there is a commercial relationship. The consumer must be able to distinguish when they are being sold a product and when they are not,” she concluded.
This concern is not unique to Panama. Regulators in the United States, the United Kingdom, and across the European Union have all grappled with similar issues in recent years. The Federal Trade Commission in the U.S., for example, has issued increasingly strict guidelines requiring influencers to use clear, conspicuous labels like “#ad” or “sponsored” on paid posts. Panama’s proposal follows a similar logic but adapts it to the local legal and cultural context.
The bill’s journey through the Assembly will likely involve hearings, amendments, and extensive lobbying from both consumer advocacy groups and influencer trade organizations. Some creators have already voiced concerns that the rules could be difficult to enforce or could penalize small creators who do not have legal teams reviewing every post.
Others, however, have welcomed the move as a way to professionalize the industry and weed out deceptive practices that harm consumer trust. For now, the proposal remains in its early stages, and the outcome is far from certain. But one thing is clear: Panama is taking a serious look at how to bring accountability to the fast-growing world of social media influence.