State legislatures have passed new laws focused on disclosing the use of AI in advertisements or depictions of individuals. On September 16, California Governor Gavin Newsom signed SB 1050, a new law requiring disclosures when certain advertisements prominently feature a “synthetic performer.”  This was one of several AI-related measures signed by Governor Newsom this year, which we summarized in our prior blog post. 

  • SB 1050: California SB 1050 will prohibit a person from creating and causing to be published in an advertising medium an advertisement that “prominently” includes a “synthetic performer,” unless the advertisement contains a clear and conspicuous disclosure.  The law defines “synthetic performer” as a digital figure, voice, or representation created, in whole or in part, using generative artificial intelligence that creates the realistic impression of the audio, audiovisual, or visual performance of a human performer who is not recognizable as any identifiable natural person.  The disclosure obligation will only apply when the synthetic performer appears “prominently,” which the text clarifies means a person in the foreground and demonstrating or illustrating the product or service, or providing or voicing, or illustrating or reacting to, the on- or off-camera narration or commercial message. A violation of these requirements would qualify as a violation of California’s false advertising laws. The law will enter into effect January 1, 2027.
  • California’s law closely resembles New York’s synthetic performer disclosure statute, codified at N.Y. Gen. Bus. Law § 396-b.  The New York law similarly requires advertisers to provide a clear and conspicuous disclosure when a synthetic performer is used in an advertisement.
  • Hawaii’s Approach: Unlike California SB 1050, which focuses on AI transparency and disclosures for synthetic performers who are not recognizable as an identifiable person, Hawaii’s new statute focuses on the unauthorized use of realistic digital imitations of identifiable individuals.  Hawaii considered a similar disclosure-based framework for synthetic performers in the originally introduced version of the bill, but the state ultimately enacted a law that instead prohibits a person from knowingly publishing a realistic digital imitation of an identifiable individual without that individual’s consent when the imitation is used in connection with advertising, causes harm, or is used to facilitate fraud, defamation, harassment, or other unlawful conduct.  

Companies using generative AI in marketing and advertising should evaluate whether their advertisements trigger state-specific disclosure obligations and consider the requirements of existing consumer protection laws such as the FTC Act.  Check back here for more updates in state regulation of AI-generated advertising and content.

Photo of Jayne Ponder Jayne Ponder

Jayne Ponder counsels companies on the intersection of privacy, AI, and emerging technology regulation, and routinely represents clients in regulatory inquiries, investigations, and enforcement matters before federal and state agencies.

Jayne counsels clients across industries to launch and enhance products, services, and governance…

Jayne Ponder counsels companies on the intersection of privacy, AI, and emerging technology regulation, and routinely represents clients in regulatory inquiries, investigations, and enforcement matters before federal and state agencies.

Jayne counsels clients across industries to launch and enhance products, services, and governance programs involving their collection and use of data and emerging technologies. Her experience spans U.S. comprehensive privacy, automated decisionmaking, AI governance, biometric privacy, surveillance and algorithmic pricing, and AI transparency, disclosure, and safety frameworks. She partners with clients to design products and governance programs that keep pace with the dynamic regulatory environment, including in connection with digital and online advertising, social media, AI-powered and agentic services, connected devices, and robotics.

In addition, she advises companies on engagement with federal and state regulators, including through enforcement and rulemaking. Jayne analyzes privacy and security risks in complex corporate transactions. She also provides strategic input on the legislative, regulatory, and policy developments shaping the privacy and AI landscape.

Jayne maintains an active pro bono practice, focusing on assisting nonprofits with their privacy programs and elder estate planning.

Photo of Laura Kim Laura Kim

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her…

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her clients’ objectives.

As chair of Covington’s Advertising & Consumer Protection Investigations practice group, Laura represents corporate and individual clients in investigations before the FTC and State Attorneys General. She also provides pragmatic compliance advice on a wide range of consumer protection issues, including substantiating claims involving generative artificial intelligence, environmental benefits, and “Made in USA.” She counsels brands on emerging issues involving influencers, consumer reviews, AI-generated content, and subscription autorenewals. Laura regularly represents both challengers and advertisers before the NAD, achieving favorable outcomes in matters involving artificial intelligence, influencers, and claim substantiation.

During her twelve-year tenure at the FTC, Laura served as Assistant Director in two divisions of the Bureau of Consumer Protection, Attorney Advisor to Chairman William E. Kovacic, and Chief of Staff to Bureau Director Jessica Rich. She oversaw major rulemakings—including the Green Guides and the Telemarketing Sales Rule—and supervised dozens of investigations and enforcement actions. As Assistant Director in the Division of Enforcement, Laura also supervised compliance monitoring and enforcement proceedings for companies under federal court or Commission order.

Photo of Irene Kim Irene Kim

Irene Kim is an associate in the firm’s Washington, DC office, where she is a member of the Privacy and Cybersecurity and Advertising and Consumer Protection Investigations practice groups. She advises clients on a broad range of issues, including U.S. state and federal…

Irene Kim is an associate in the firm’s Washington, DC office, where she is a member of the Privacy and Cybersecurity and Advertising and Consumer Protection Investigations practice groups. She advises clients on a broad range of issues, including U.S. state and federal AI legislation, comprehensive state privacy laws, and regulatory compliance matters.