Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law on Thursday. The legislation mandates that any advertisement significantly modified or generated by artificial intelligence must include a label. This requirement applies to all forms of ad content, including still images, videos, audio files, and text.
The law specifies that these labels must appear in the same format as the advertisement itself. This means a video ad must carry a video label, while a text-based ad requires a text disclosure. The rule covers all advertisements distributed within the state, regardless of where the content was originally created. Advertisers targeting Pennsylvania audiences in other states may also need to comply with these labeling standards.
Scope and Application
The statute applies to a wide range of commercial communications. It covers everything from television commercials produced by large corporations to local flyers distributed by small businesses. The law does not distinguish between the size of the advertiser or the budget of the campaign. Any ad that uses synthetic content in a way that creates a false consumer perception about a product or service falls under the new regulations.
Pennsylvania is among the first states to implement such a mandate. Other states are currently considering similar measures, but Pennsylvania has moved ahead with specific statutory language. The law aims to ensure consumers can identify when artificial intelligence has been used to create or alter advertising material.
Loopholes and Ambiguities
The new law leaves several areas open to interpretation. The statute requires disclosure only when content is “significantly modified” by AI. The term “significantly” is not defined in the text, leaving it to be determined on a case-by-case basis. This subjective standard could lead to inconsistent enforcement or compliance challenges for advertisers.
Additionally, the law includes exemptions for content that is “evidently fictional.” It also excludes material created for “parody, satire, commentary or criticism.” The boundaries of these exceptions are unclear. It remains uncertain what qualifies as evidently fictional or how regulators will distinguish between protected speech and deceptive advertising.
The legislation also hinges on the concept of “false consumer perception.” Advertisers must determine whether their use of synthetic content misleads consumers about a product or service. The law does not specify who makes this determination or what evidence is required to prove a perception is false. These ambiguities may result in legal questions as the law is implemented.
The office of State Senator Nick Pisciottano, who introduced the bill, did not immediately return a request for comment regarding the final text of the law. The statute now takes effect as Pennsylvania joins a small group of states with specific rules governing AI-generated advertising content.
Source: The Verge
