Pennsylvania Enacts AI Ad Disclosure Law

Pennsylvania signed the AI Deceptive Advertising Act into law on October 23, 2026, setting disclosure requirements for commercial ads that use AI-generated or substantially modified content to create a false impression about advertised goods or services. The law requires a clear and conspicuous notice in the language and medium of the ad, shown when the consumer first sees it, and presented so it is difficult to remove or obscure. The Pennsylvania Attorney General or a district attorney may bring an action on behalf of the Commonwealth. A court may declare the practice unlawful, seek a temporary or permanent injunction, and award damages that may include a civil fine of no more than $3,000. The offense is civil, and the bill notes no independent enforcement office or investigators.

The law defines AI, including generative AI, as a machine-based system that can make predictions, recommendations or decisions for human-defined objectives in real or virtual environments. “Clear and conspicuous” notices must be noticeable and understandable based on size, color, contrast, placement, duration and audibility. “Synthetic content” means images, video, audio or text significantly modified or generated by AI. Exceptions cover clearly fictional content, parody, satire, commentary, criticism and text-only content. There are no exceptions based on a company’s size or the amount of its ad buy, so the author says small businesses must also consider disclosures when using AI in advertising.

The law targets synthetic content used to create a false consumer perception, but the article says its wording leaves unresolved questions. It does not clearly define false perception, and language requiring advertiser intent was removed from Section 4.a; under the author’s reading, disclosure may therefore be required even if a false impression was accidental. The scope of the standard is also uncertain when an ad uses a synthetic actor but AI has not altered the advertised product or claims about its results. A bill co-sponsor said public hearings focused more on AI making a product look better than it is than on improving the appearance of the actor holding it. The author says an ad with a synthetic spokesperson and accurate product representations may not need disclosure in Pennsylvania, while brands seeking to be cautious can disclose any AI-created content.

The article compares Pennsylvania’s law with existing rules and proposals elsewhere. California and New York require disclosure when synthetic performers are used, including performers not recognizable as real people; Illinois and Minnesota have laws addressing unauthorized AI replicas of living or deceased people in commercial ads. At the federal level, multiple AI regulation and disclosure proposals are before committees. The proposed AI Labeling Act of 2026 would require clear, conspicuous and machine-readable disclosures for AI-generated content, require online platforms to make covered content identifiable and accessible, and authorize the US Attorney General to enforce a statutory fine of no more than $2,500 per act of circumvention. The author advises advertisers to discuss consumer perception, document decisions and provide disclosures where appropriate.

Pennsylvania signed the AI Deceptive Advertising Act into law on October 23, 2026, setting disclosure requirements for commercial ads that use AI-generated or substantially modified content to create a false impression about advertised goods or services. The law requires a clear and conspicuous notice in the language and medium of the ad, shown when the consumer first sees it, and presented so it is difficult to remove or obscure. The Pennsylvania Attorney General or a district attorney may bring an action on behalf of the Commonwealth. A court may declare the practice unlawful, seek a temporary or permanent injunction, and award damages that may include a civil fine of no more than $3,000. The offense is civil, and the bill notes no independent enforcement office or investigators.

The law defines AI, including generative AI, as a machine-based system that can make predictions, recommendations or decisions for human-defined objectives in real or virtual environments. “Clear and conspicuous” notices must be noticeable and understandable based on size, color, contrast, placement, duration and audibility. “Synthetic content” means images, video, audio or text significantly modified or generated by AI. Exceptions cover clearly fictional content, parody, satire, commentary, criticism and text-only content. There are no exceptions based on a company’s size or the amount of its ad buy, so the author says small businesses must also consider disclosures when using AI in advertising.

The law targets synthetic content used to create a false consumer perception, but the article says its wording leaves unresolved questions. It does not clearly define false perception, and language requiring advertiser intent was removed from Section 4.a; under the author’s reading, disclosure may therefore be required even if a false impression was accidental. The scope of the standard is also uncertain when an ad uses a synthetic actor but AI has not altered the advertised product or claims about its results. A bill co-sponsor said public hearings focused more on AI making a product look better than it is than on improving the appearance of the actor holding it. The author says an ad with a synthetic spokesperson and accurate product representations may not need disclosure in Pennsylvania, while brands seeking to be cautious can disclose any AI-created content.

The article compares Pennsylvania’s law with existing rules and proposals elsewhere. California and New York require disclosure when synthetic performers are used, including performers not recognizable as real people; Illinois and Minnesota have laws addressing unauthorized AI replicas of living or deceased people in commercial ads. At the federal level, multiple AI regulation and disclosure proposals are before committees. The proposed AI Labeling Act of 2026 would require clear, conspicuous and machine-readable disclosures for AI-generated content, require online platforms to make covered content identifiable and accessible, and authorize the US Attorney General to enforce a statutory fine of no more than $2,500 per act of circumvention. The author advises advertisers to discuss consumer perception, document decisions and provide disclosures where appropriate.