Ads with AI-made images, video, or audio that could mislead buyers would need a label saying AI was used, with fines of up to $3,000 for leaving it off.
Pennsylvania lawmakers passed a bill requiring advertisers to label ads that use AI-made or AI-altered images, video, or audio in a way that could mislead buyers.
The state House approved Senate Bill 806, the Artificial Intelligence Deceptive Advertising Act, by a vote of 163 to 40. The Senate passed the same text 48 to 2 in June, so the bill now goes to Gov. Josh Shapiro. He can sign or veto it. If he does neither within 10 days of receiving it, it becomes law without his signature. It would take effect 60 days after it becomes law.
Companies advertising in Pennsylvania would have to add a clear label to any ad where AI content could give a false impression of the product. If they don’t, the state attorney general or a county district attorney can take them to court, where a judge can impose a fine of up to $3,000 plus legal costs.
Pennsylvania joins New York and California, but goes further
New York began requiring labels on ads that show AI-generated people on June 9. The law carries a $1,000 fine for a first violation and $5,000 for each subsequent violation.
California followed on Sept. 16, when Gov. Gavin Newsom signed a law requiring a label on video and audio ads that use AI-generated performers.
Pennsylvania’s bill covers more kinds of content than either law. It applies to any image, video, or audio made or heavily changed by AI, not only AI-generated people. But it requires a label only when the content could mislead buyers about what is being sold, where the product comes from, or whether it is real.
Ads must say they contain AI content
The label must say that the ad contains content made or changed using AI. It must appear as soon as the AI content does, in the same form as that content: on-screen for video, spoken for audio, and printed for print ads. It must be easy to notice and understand, and in the language the ad uses. Where the technology allows, it must be permanent or very hard to remove.
The rule applies to advertisers that run such an ad knowingly or recklessly. Ads that are obviously fiction are exempt, as are parody, satire, commentary, and criticism. Ads made up only of text are also exempt.
The state can go to court, with fines up to $3,000
The attorney general or a district attorney can ask a court to order an advertiser to stop running an ad, and can sue over a violation. A court can fine the advertiser up to $3,000 and order it to pay legal fees and court costs.
Adding a label does not shield an advertiser from lawsuits under other laws.
Senators from both parties backed the bill
State Sen. Nick Pisciottano (D) sponsored the bill with Democratic and Republican senators. In a memo asking colleagues to join him, he wrote that AI images and video have become so realistic that the average shopper struggles to tell them apart from real ones, and that a label would help fight scams.
Shapiro has not yet signed the bill.
