New AI Transparency Requirements Enacted for Advertisers and Deployers

In this entry for the Inside Legal Tech blog, authors Jayne Ponder, Laura Kim & Irene Kim (Covington & Burling) share updates on new state laws regulating AI-generated advertising and digital representations of individuals. On September 16, California Governor Gavin Newsom signed SB 1050, which requires clear and conspicuous disclosures when advertisements prominently feature a “synthetic performer.” The law defines this as an AI-generated digital figure, voice, or representation that realistically portrays a human performer who is not recognizable as an identifiable person. Effective January 1, 2027, violations will constitute violations of California’s false advertising laws.

California’s approach resembles New York’s existing disclosure requirements for synthetic performers. Hawaii, by contrast, has adopted a law targeting the unauthorized use of realistic digital imitations of identifiable individuals. It prohibits knowingly publishing such imitations without consent when used in advertising, causing harm, or facilitating fraud, defamation, harassment, or other unlawful conduct. The contrasting approaches reflect different state priorities: California emphasizes transparency in advertising, while Hawaii focuses on consent and preventing harmful misuse of an individual’s likeness.

Companies using generative AI in marketing should assess whether their advertisements trigger state-specific disclosure requirements and review their practices against existing consumer protection laws, including the Federal Trade Commission Act. As state regulation of AI-generated advertising and content continues to develop, businesses should monitor legislative changes and ensure their marketing practices comply with applicable requirements…

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