Home / Technology / NY Cracks Down on Secret AI Actors in Ads
NY Cracks Down on Secret AI Actors in Ads
27 Aug
Summary
- New York's new law mandates disclosure for AI performers in ads.
- Four complaints alleging undisclosed AI use have been filed.
- Violators face fines starting at $1,000 for non-disclosure.
New York state enacted a pioneering law in June requiring transparent disclosure when artificial intelligence is used to create models or actors for advertisements. Since its implementation, four complaints have been filed with the state's Attorney General, all currently under review.
These complaints mark the first challenges to the Synthetic Performers law, the nation's first of its kind. One complaint targets the performance wear brand Athletifreak for allegedly using AI-generated models, supported by screenshots from their website. Another complaint accuses the London-based eyewear company Bloobloom of running social media ads featuring synthetic performers directed at New York residents.
Governor Kathy Hochul emphasized the law's role in setting responsible innovation standards. Companies doing business in New York must comply or face penalties, with initial fines set at $1,000 and up to $5,000 for repeat offenses. This state-level action comes amid a less regulated federal landscape, though the FTC has rules against deceptive practices that could apply to AI-generated testimonials.
The FTC's stance, outlined in a July 1 AI statement, suggests a preference for a national AI framework, potentially viewing state-level regulations as burdensome. However, for now, New York's proactive approach is addressing concerns about AI's role in advertising, with more complaints anticipated as awareness grows.
