I get it, local papers are struggling to survive and ad revenue is down. And there is a note on the page to identify that it is “sponsored content.” But at first glance it’s visually indistinguishable from any other story or op-ed the paper publishes. This is misleading to casual readers.
For context, there is an ongoing multi-decade legal fight to get the government to remove four large dams on the Snake River in the northwest US. The paid content here is written by a consortium representing organizations which have financial incentives to keep the dams in place.
https://en.wikipedia.org/wiki/Snake_River#Proposed_dam_removal
You have no law that forbids this?
No. I am not sure how we could even craft such a law in the current US legal climate. Political speech, and money tied to political speech, are nearly impossible to regulate in any meaningful way.