Pennsylvania Enacts Law Mandating Labels on AI-Generated Advertisements

Image: Pennsylvania will require labels on AI-generated ads · Source

Pennsylvania's new Artificial Intelligence Deceptive Advertising Act requires that all ads significantly modified or created by AI must carry a clear label, covering all ad formats such as text, images, video, and audio.

Pennsylvania Governor Josh Shapiro signed into law the Artificial Intelligence Deceptive Advertising Act, setting a precedent by requiring disclosures on advertisements generated or significantly altered by artificial intelligence. This newly enacted law mandates that any advertisement—whether a still image, video, audio, or text material—that has been substantially modified or produced through AI must prominently display a label in the same format as the ad itself. This applies broadly, affecting a range of ads from major television commercials produced by multinational corporations to local promotional flyers, such as those advertising restaurant specials.

One notable aspect of this legislation is its extraterritorial reach: advertisements aired in Pennsylvania must comply with the labeling requirement even if produced elsewhere, potentially leading to AI disclosure labels appearing in ads in other states if those same ads are broadcast in Pennsylvania.

Despite its pioneering nature, the law leaves several ambiguities. Key terms like "significantly modified" and "evidently fictional" are not explicitly defined, introducing subjective interpretation. Furthermore, exemptions exist for certain categories of content, including parody, satire, commentary, criticism, and anything deemed clearly fictional. The law appears to focus its disclosure requirements on synthetic content used in a way that could create a false consumer perception about a product or service.

The absence of precise definitions creates uncertainty about which ads require labeling and what exactly constitutes a "false" impression under the law. Enforcement details and criteria for such determinations have yet to be clarified. State Senator Nick Pisciottano, who introduced the bill, has not publicly commented on these unresolved questions.

Pennsylvania thus joins a nascent group of states addressing the implications of AI in advertising, representing one of the first legal frameworks aimed at transparency in AI-generated promotional content. The legislation underscores growing concerns about AI's increasing role in shaping consumer information and the need for regulatory oversight to protect consumers from misleading or deceptive AI-driven advertising practices.