The Victorian Electoral Commission could be asked to beef up its regulation of political tweets, online smear campaigns and Google advertisements as concerns mount about the impact of social media on state election outcomes.

A state parliamentary inquiry is investigating the influence of social media on Victorian elections and to ask whether online advertising, including Google AdWords, are properly regulated.

“The use of social media has really outstripped the law,” committee chair and Liberal MP Bernie Finn said.

“We have a situation where people can put advertising on social media without authorisation but in a newspaper, television or on radio they would have to have authorisation. On social media it’s the wild, wild west. It's anything goes.”

Mr Finn did not rule out penalties for people involved in online smear campaigns and said he hoped the committee reported back to Parliament before the coming November election.