Key Takeaways
- Pennsylvania passed legislation prohibiting advertisers from creating AI-generated advertisements that create a false perception about goods or services without a clear disclosure, addressing growing concerns about AI advertising legislation.
- California enacted a law requiring disclosures for rental property advertisements that use digitally altered images, including changes to fixtures, appliances, views, and neighboring properties, as part of broader state AI advertising laws focused on real estate.
- California signed legislation requiring clear disclosures when advertisements prominently feature synthetic performers created using generative AI, following New York's similar law that took effect in June.
- Several states considered chatbot advertising regulation this year, with proposed bills in Utah, Maryland, and New Jersey that would restrict how chatbots advertise products and use chat logs for targeted advertising.
- Kentucky and Louisiana each considered legislation that would prohibit mental health chatbots from advertising products or services to users, reflecting concerns about how AI-generated advertisement disclosure requirements should apply to sensitive healthcare contexts.
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Turn on the TV or scroll through social media, and odds are you will see an ad featuring AI-generated content. As businesses use AI to market everything from legal services to homes, state lawmakers are scrutinizing whether some of these advertisements may be misleading consumers. This year, lawmakers proposed several bills addressing the use of AI in advertising, ranging from general labeling requirements for AI-generated advertisements to legislation targeting advertisements for specific products and services. This push reflects a broader trend in state AI policy toward requiring transparency about when and how the technology is used.
Recently, AI-generated advertisements have increased as AI tools and software become more widely used. Some businesses use AI to generate content, while others use it to enhance or modify the appearance of their products. However, this use has raised concerns among lawmakers and the public about whether AI-generated ads depict a product very different from what is actually available.
Synthetic Performer
A synthetic performer is a digital figure, voice, or representation created in whole or in part using generative AI that simulates a human performer who is not recognizable as any identifiable natural person. This term has become central to recent state advertising disclosure laws, particularly in California and New York, which require clear disclosures when advertisements prominently feature such AI-generated representations. The definition typically exempts expressive works such as movies, TV shows, streaming content, video games, and documentaries.
Frequently Asked Questions
Which states have passed laws requiring disclosures for AI-generated advertisements?
Pennsylvania passed a bill (SB 806) prohibiting advertisers from creating and distributing ads that use AI in a way that creates a false perception about the nature, origin, or authenticity of goods or services without a clear and conspicuous disclosure. California's governor signed SB 1050, requiring a clear and conspicuous disclosure for advertisements that prominently include a synthetic performer, defined as a digital figure, voice, or representation created using generative AI that simulates a human performer not recognizable as any identifiable natural person.
What does California AB 2025 require for real estate listings that use AI-altered images?
California AB 2025 requires disclosures for advertisements for rental properties that use digitally created or altered images. A real estate broker or salesperson who includes a digitally altered image must disclose the alteration tool and provide the original, unaltered image, with 'digitally altered image' covering changes to fixtures, appliances, paint color, facade, floor plans, and exterior elements such as views, neighboring properties, streetlights, and utility poles.
Were there any state bills to restrict chatbots from using conversation data for targeted advertising?
Maryland considered legislation (SB 827) that would have prohibited using chat logs for targeted advertisements. New Jersey proposed a bill (A 5607) that would prohibit using chat logs for customized or targeted advertising.
What states have considered restrictions on advertising by mental health chatbots?
Kentucky (KY HB 641) and Louisiana (LA SB 5) each considered legislation prohibiting mental health chatbots from advertising products or services to users.
How does California's synthetic performer disclosure law differ from New York's?
California's SB 1050 requires a clear and conspicuous disclosure when an advertisement prominently includes a synthetic performer and exempts advertisements for expressive works such as movies, TV shows, streaming content, video games, and documentaries. It is similar to a first-of-its-kind law from New York (A 8887/S 8420).
