Pennsylvania requires labels for AI-generated advertising

The law requires advertisements created or substantially altered by AI and shown in Pennsylvania to be labeled. Advertisers are responsible; exceptions are provided for satire and obvious fiction.

Pennsylvania introduces mandatory labels for AI-generated advertising

Pennsylvania has passed a law requiring advertisers to disclose the use of artificial intelligence to create or substantially alter advertising materials. Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act on Thursday. It will take effect in 60 days.

The requirement applies to advertising in various formats—images, video, audio, and text. The disclosure must be presented in the same format as the advertisement itself. State Senator Nick Pisciottano, who introduced the bill, explained that if an ad on Facebook or another online platform is created with AI, it must be labeled at the bottom. He said the law is intended to protect consumers.

Why new rules were needed

Companies are increasingly using AI-generated images to promote goods and services. These include restaurants and food delivery services. Such materials may not reflect the actual product: for example, Just Eat apologized for an AI-generated menu image showing bacon floating in a soft drink. Cases like these raise questions about how accurately advertising images represent what customers will receive.

Pisciottano warns that as the technology develops, it will become increasingly difficult to distinguish authentic materials from fakes. He believes that, over time, the difference between genuine and artificially created content may become almost imperceptible.

Who the law affects

The rules apply to advertising shown in Pennsylvania, regardless of where it was produced. As a result, advertisers from other states may also be required to disclose their use of AI. This applies, in particular, to television commercials shown to audiences in Pennsylvania.

The law prohibits distributing advertisements in which synthetic content creates a false impression about the nature, origin, or authenticity of a product or service without a clear disclosure that AI was used to create or alter the material.

Interpretation and liability

Some provisions of the law leave room for interpretation. In particular, the phrase “substantially altered” may be interpreted in different ways. Certain exceptions apply to parody, satire, commentary, and criticism, which may limit the circumstances in which a label is required. The law also does not apply to material considered obviously fictional, though the precise meaning of this criterion is not defined.

The Pennsylvania Office of the Attorney General will oversee compliance. Pisciottano allows that violations could result in fines and even imprisonment, but penalties should apply to companies working with AI, not individual users. Companies will be responsible for ensuring that AI-generated advertisements include the required disclosures.

According to the senator, representatives of consumer protection organizations said during the development of the bill that older people had been deceived by fake AI-generated ads. These groups noted that some older adults find it harder to navigate digital technology.

Pennsylvania has become one of the first states to establish specific requirements for disclosing the use of AI in advertising. Pisciottano expects similar rules to emerge in other regions. At present, comparable requirements are in force in only a few states; the senator expects that such measures will eventually be adopted either at the federal level or across many states.

The photograph shows the Pennsylvania State Capitol building. Image provided under a Depositphotos license.