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Josh Shapiro

Josh Shapiro speaking at a podium with two microphones, for a story on Pennsylvania's new law on labeling AI content in ads

Shapiro Signs Law Requiring Pennsylvania Ads To Label AI Content That Could Mislead Buyers

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Starting Dec. 21, ads that use AI-made images, video, or audio in a way that could mislead buyers must disclose that AI was used, or advertisers face a fine of up to $3,000.

Gov. Josh Shapiro signed Pennsylvania’s Artificial Intelligence Deceptive Advertising Act on Oct. 22, requiring advertisers to label ads that use AI-made or AI-altered images, video, or audio in a way that could mislead buyers about a product.

The law takes effect on Dec. 21, 2026. After that, the state attorney general or a county district attorney can sue an advertiser over a misleading ad that uses AI content without a label, and a judge can fine the advertiser up to $3,000 plus legal costs.

The House passed Senate Bill 806 by a vote of 163 to 40 on Oct. 7, after the Senate passed it 48 to 2 in June 2026. Shapiro signed it with 57 other bills.

What advertisers must do

The law covers images, video, and audio that AI created or significantly changed. A label is required only when that content could give buyers a false impression of what is being sold, where it comes from, or whether the product is genuine.

The label must say the ad contains content made or altered using AI. It must appear as soon as the AI content does, in the same form: on screen for video, spoken for audio, and printed for print ads. Where the technology allows, the label must be permanent or very hard to remove from the AI content.

The rule applies to advertisers that create or run such an ad “knowingly, recklessly or willfully.” Ads that are obviously fiction are exempt, as are parody, satire, commentary, and criticism. Ads made up only of text are also exempt.

Adding a label does not protect an advertiser from lawsuits under other laws.

Only state and county prosecutors can enforce it

Besides suing for a fine, the attorney general or a district attorney can ask a court to order an advertiser to stop running an ad. The law does not give consumers or competitors the right to sue.

Lawmakers changed the scope before passing the bill

As introduced in June 2025, the bill would have added a new item to the list of illegal business practices in Pennsylvania’s consumer protection law: creating or publishing any AI-generated content, including written text, without a label. The Senate rewrote it in June 2026 as a separate law that requires a label only on ads that could mislead buyers, and exempts text.

Pennsylvania’s law covers more kinds of AI content than New York’s or California’s

New York began requiring labels on ads that show AI-generated people on June 9, 2026. California followed on Sept. 16, when Gov. Gavin Newsom signed a law requiring labels on video and audio ads that use AI-generated performers.

Pennsylvania’s law applies to any AI-made or AI-altered image, video, or audio, not only AI-generated people. But it requires a label only when that content could mislead buyers.

Ad images, a shield, and a checklist beside a capitol in a keystone frame, for Pennsylvania's Deceptive Advertising Act

Pennsylvania Passes Bill Requiring Ads to Disclose AI Content That Could Fool Buyers

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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.

Pennsylvania state flag above glowing blue data centers and network lines, 2026 state data center requirements

Shapiro Signs Order Setting Requirements For Pennsylvania Data Centers

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Data centers drawing more than 25 megawatts must secure local zoning approval, cover their own electricity costs, and sign a binding agreement with the state before regulators will issue permits.

 

Governor Josh Shapiro signed an executive order on August 18 setting requirements that data center developers must meet before Pennsylvania approves a project. Executive Order 2026-05 covers any data center with peak demand above 25 megawatts and took effect immediately.

The order governs the buildout of AI computing capacity in the state. More than 100 data center projects have been reported in Pennsylvania, and PJM Interconnection, the grid operator covering the state and 12 others, expects data centers to drive most of the growth in electricity demand on its system. Its 2025 forecast projected 74 gigawatts of added demand by 2045 on the hottest days of the year, when the grid works hardest.

Some of that cost already reaches customers. PJM runs an annual auction that pays power plants to stay available to supply electricity in future years, and utilities pass the charge along on bills. Across the last four of those auctions, data centers accounted for $29.4 billion of the charge, or 46% of the total, according to PJM’s Independent Market Monitor.

“My message to data center developers is clear: if you can’t agree to our strict requirements and get the community where you want to build to say ‘yes,’ you’re not going to have the Commonwealth’s support either,” Shapiro said at the signing in Harrisburg.

 

What the order requires

The requirements come from the Governor’s Responsible Infrastructure Development standards, known as GRID, which the administration announced in February and published in May. They cover four areas. Developers must now.

  1. Pay the full cost of the electricity generation, transmission, and distribution their projects need, rather than shifting it to households and businesses. 
  2. Hold public meetings and consult communities early on major design decisions. 
  3. Hire and train local workers and sign community benefit agreements covering schools, infrastructure, and local economic development.
  4. Meet state environmental standards, including water conservation limits.

 

How the state enforces them

The Department of Environmental Protection (DEP) will not begin reviewing permits until a developer documents that the project matches the local comprehensive plan and holds every municipal zoning approval.

Developers who sign a project-specific Consent Order and Agreement committing to the GRID standards get applications reviewed on a rolling basis, with permits issued as each one clears and the GRID terms written in as permit conditions. Developers who do not sign must wait until DEP has received and reviewed every application for the project before DEP issues anything.

Data centers are no longer eligible for the PA Permit Fast Track Program. The Department of Revenue must update the sales and use tax exemption for data center equipment so only applicants meeting the GRID standards qualify.

 

What developers must disclose

No state agency under the governor may sign a nondisclosure agreement on a data center project. DEP must publish a map showing permitting status for every known proposed project.

Beginning July 1, 2027, operating Pennsylvania data centers must file annual reports on their electricity, gas, and water use, and on what they expect to need the following year.

 

What the order asks regulators to do about costs

The order directs Special Counsel for Energy Affordability Mark Szybist to ask the Pennsylvania Public Utility Commission to charge data centers for the cost of serving them. That means charges from a new PJM auction for extra supply, the cost of connecting a project to the grid, and protection for other customers if a data center cannot pay.

A governor cannot set electricity rates by executive order. The Public Utility Commission regulates utilities independently and would have to approve any of it, and federal regulators are weighing related questions in two open cases. This part of the order is a request, and its outcome is not settled.

 

Why the state wants signatures instead of promises

In July, seven of the largest AI and cloud companies signed a White House initiative called the Ratepayer Protection Pledge, promising to pay for the new power supply their data centers need instead of passing the cost to other customers. Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI are all signatories.

The pledge carries no penalty for breaking it. Pennsylvania’s order says as much, and asks developers for the same commitments in a form the state can act on, written into permits it has the power to withhold.

 

What happens next

DEP has not yet released the standard agreement developers will be asked to sign, so the exact terms are not public. The Department of Community and Economic Development owes municipalities model zoning rules and sample community benefit agreements to work from.

The Data Center Coalition, an industry trade group, said: “One-size-fits-all policies that stifle investment and job creation are not the path forward.” Other states are moving in the same direction. New Jersey passed a law this year requiring data centers to fund their own energy costs, and New York has moved to restrict large projects.