Seen an ad with an AI influencer or actor? It may be against the law.
Complaints of undisclosed AI use have been submitted to New York's AG under a new law. But the FTC recently signaled the state may not have the authority.
In June, the state of New York enacted a law that mandates companies to disclose when they utilize AI-generated models or actors in advertisements. Since the law's inception, the state has received its first set of complaints against advertisers for alleged violations. Four complaints have been lodged with the New York Attorney General's office, and all are currently under review.
This is the first of its kind in the United States, reflecting the growing concern over AI-generated content. Companies that fail to disclose AI-generated influencers or actors in their ads could also be infringing on federal regulations, although the Trump administration has thus far adopted a laissez-faire stance on AI regulation.
The first two anonymous complaints, obtained and published by Straight Arrow News, accuse Athletifreak, a premium performance wear brand, and Bloobloom, a London-based eyewear company, of using synthetic models or performers in their advertisements without proper disclosure. Both complaints were filed in June, shortly after the law took effect.
New York Governor Kathy Hochul emphasized the importance of transparency, stating that the new law protects consumers, respects creative workers, and keeps New York at the forefront of responsible innovation.
Under the Synthetic Performers law, companies doing business in New York must comply or face fines ranging from $1,000 for a first offense to $5,000 for repeat violations. Amazon has also implemented a new requirement for third-party sellers on its platform, necessitating the disclosure of AI usage in product images and videos. While New York's legislation is welcomed by AI safety advocates and critics of the technology, it remains to be seen whether the federal government will step in to regulate AI-generated content more stringently.
The Federal Trade Commission (FTC) has rules against fake reviews and testimonials, but it has not yet explicitly addressed AI-generated content. The FTC's stance suggests that AI-generated individuals providing testimonials or claiming expertise could be deemed deceptive and, therefore, illegal. However, the administration's emphasis on innovation might limit the FTC's willingness to enforce such regulations.
As companies explore the possibility of creating AI influencers, New York's regulation may serve as a model for other states grappling with the ethical implications of AI in advertising.
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