Pennsylvania Enacts AI Ad Disclosure Law

Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law on Thursday. The legislation mandates that advertisements significantly modified or generated by artificial intelligence must include a specific label. This requirement applies broadly, covering TV commercials from multi-billion-dollar companies as well as flyers for restaurant wing specials. The law requires that the disclosure label appears in the same format as the ad itself.

The bill, introduced by State Senator Nick Pisciottano, establishes that labels are required regardless of where the advertisement was created. Disclosures may also appear in commercials airing in other states if those ads are expected to be broadcast in Pennsylvania. Pennsylvania is now one of the first states to mandate disclosures on AI-generated content.

The law includes specific exemptions and limitations. It contains a carve-out for parody, satire, commentary, or criticism. Content that is evidently fictional is also exempt. Furthermore, a disclosure is only required if the synthetic content creates a false consumer perception about a product or service. The legislation leaves many loopholes regarding the definition of what constitutes a significant modification.