New York has enacted a new law requiring disclosure of AI-generated performers in advertisements. This episode breaks down what ecommerce brands need to know to comply, focusing on the definition of "synthetic performer," what constitutes "conspicuous disclosure," and potential liabilities. It also explores the broader implications for brand trust and authenticity in an increasingly AI-driven advertising landscape, offering crucial guidance to mitigate legal and reputational risks.
Key takeaways
Understand New York's new AI disclosure law, which defines 'synthetic performer' as an AI-generated avatar intended to appear human, and mandates conspicuous disclosure in ads using such technology. This does not apply to AI-generated likenesses of real individuals, which are covered by existing publicity rights laws.
For video advertisements, ensure "conspicuous disclosure" is not just in text captions but also superimposed within the video content itself, and ideally, audibly stated, to meet standards similar to the FTC's clear and conspicuous guidelines.
Be aware that while the current New York law carries a $1,000 fine for a first offense and $5,000 for subsequent offenses, the primary risk for brands might be reputational damage from being targeted by the New York Attorney General's office.
Prioritize authenticity in advertising by using real creators and people in ads wherever possible, as studies suggest consumers distrust AI-generated content, which can decrease brand trust by as much as 25%.
Recognize that this New York law, and similar upcoming legislation, has implications beyond full AI-generated people, potentially extending to AI-generated body parts in ads (e.g., a hand modeling a ring), requiring brands to consider even subtle AI usage. This also intersects with existing laws against misleading advertising, especially for product claims (e.g., skincare before/after photos).
Rob Freund is an ecommerce and advertising lawyer at Robert Freund Law. Follow and connect with him on X at https://x.com/RobertFreundLaw.FOLLOW UP WITH ANDREWX: https://x.com/andrewjfarisEmail: podcast@ajfgrowth.comWork With AJF Growth: https://ajfgrowth.comMORE STAFFINGRecruit, onboard, and train incredible virtual professionals in the Philippines with my friends at More Staffing by visiting https://morestaffing.co/af.MOVE SUPPLY CHAINReduce your OpEx and create more leverage in your company with financial forecasting, AI, and offshore talent by visiting https://movesupplychain.com/.
Understand New York's new AI disclosure law, which defines 'synthetic performer' as an AI-generated avatar intended to appear human, and mandates conspicuous disclosure in ads using such technology. This does not apply to AI-generated likenesses of real individuals, which are covered by existing publicity rights laws.
What does this episode say about brand & content?
For video advertisements, ensure "conspicuous disclosure" is not just in text captions but also superimposed within the video content itself, and ideally, audibly stated, to meet standards similar to the FTC's clear and conspicuous guidelines.
What does this episode say about paid acquisition?
Be aware that while the current New York law carries a $1,000 fine for a first offense and $5,000 for subsequent offenses, the primary risk for brands might be reputational damage from being targeted by the New York Attorney General's office.
What does this episode say about ai & automation?
Prioritize authenticity in advertising by using real creators and people in ads wherever possible, as studies suggest consumers distrust AI-generated content, which can decrease brand trust by as much as 25%.
What does this episode say about ai & automation?
Recognize that this New York law, and similar upcoming legislation, has implications beyond full AI-generated people, potentially extending to AI-generated body parts in ads (e.g., a hand modeling a ring), requiring brands to consider even subtle AI usage. This also intersects with existing laws against misleading advertising, especially for product claims (e.g., skincare before/after photos).
