Pennsylvania Passes Bill Requiring Disclosure Of Misleading AI In Ads

Pennsylvania lawmakers on Wednesday passed a bill that would require advertisers to disclose the use of artificial intelligence in ads, but only in some circumstances.

The measure (Senate Bill 806) specifically mandates disclosure when material generated or modified by AI misleads consumers about the "nature, origin or authenticity of the goods or services being advertised."

The bill now heads to Governor Josh Shapiro.

State Senator Nick Pisciottano (D-Allegheny), who sponsored the legislation, said the requirements will help prevent scams.

"Consumers deserve to know if AI is being used to create a false impression about a product or service," he stated. "This legislation sets a commonsense transparency standard so Pennsylvanians can make informed decisions about what they are buying, while still allowing businesses to take advantage of this technology.”

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The measure also includes formatting requirements, including that audio disclaimers be in a "volume and cadence" that consumers can hear, and that visual disclaimers appear on screen long enough to be read.

In addition, the disclaimers must be in the same medium as the ad, and if feasible, should be "permanent or extraordinarily difficult to remove from the synthetic content."

The tech industry group NetChoice opposed the bill, arguing in an October 4 letter to lawmakers that the measure isn't necessary because federal and state laws already prohibit deception in ads.

"Layering a parallel, AI-specific regime on top of these actively enforced laws does not enhance consumer protection," the group wrote.

NetChoice also raised concerns about the formatting requirements.

"Rules this prescriptive risk overwhelming short videos, small display ads, and audio spots," the group wrote.

Pennsylvania lawmakers are not the only ones attempting to regulate AI in ads. Last month, California Gavin Newsom signed a law requiring ads using "synthetic" performers to clearly disclose that the digital figures were generated by AI.

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