On October 7, 2026, the Pennsylvania House of Representatives passed Senate Bill No. 806, an amendment to the Pennsylvania Unfair Trade Practices and Consumer Protection Law. After receiving bipartisan support in both the House and Senate, the bill awaits Governor Shapiro’s signature.
If signed, the “Artificial Intelligence Deceptive Advertising Act” will require advertisers to place disclosures on advertisements that include “synthetic content” and create a “false consumer perception” about the goods or services advertised.
KingSpry Business Law Attorney, Karley J. Biggs, Esq., provides an overview of the law, explains its disclosure requirements, and offers practical guidance for using AI-generated content in advertisements and marketing.
Legislative Purpose
The Act serves as a consumer protection measure to combat scams and ensure transparency by requiring disclosure of synthetic content in certain advertisements.
In his sponsor memorandum, Senator Nick Pisciottano noted that AI content has become so sophisticated and realistic that the “average consumer struggles to distinguish genuine media from artificially generated content.” As a result, the Act’s sponsor’s “believe the General Assembly has the responsibility to address these issues and ensure protections are in place when consumers are viewing fake content created by AI.”
What is Synthetic Content?
The Act defines “synthetic content” as “[i]nformation . . . that has been significantly modified or generated by artificial intelligence,” including images, videos, audio, and text.
Disclosure Requirements
A disclosure is required when an advertiser creates and disseminates “an advertisement that uses synthetic content in a manner that creates a false consumer perception about the nature, origin or authenticity of the goods or services being advertised.”
The disclosure must be “clear and conspicuous” and specifically state “that the advertisement contains content that was modified or generated using artificial intelligence.” It must also be communicated as follows:
- In the first instance synthetic content is presented to the consumer;
- In the same medium as the synthetic content; and
- In a way that is permanent or “extraordinarily difficult” to remove.
Exceptions
The Act’s disclosure obligation excludes content that is “evidently fictional,” “parody, satire, commentary or criticism,” or “limited to text” only.
Enforcement
The Attorney General or a district attorney has authority to enforce the Act when they have reason to believe “any person” is using synthetic content in violation of the Act. If proceedings would be in the public interest, the Attorney General or a district attorney may bring a lawsuit against the advertiser to restrain their unlawful advertisement. Potential penalties include a $3,000 fine and/or attorney’s fees and court costs.
The Act does not create a private right of action, which means that individual consumers cannot file a claim in court directly against an advertiser for a violation of the Act. However, remedies available through existing consumer protection laws extend to deceptive advertising using synthetic content, which includes the right to bring a private lawsuit.
Effective Date
Once signed by the Governor, the Act will take effect in sixty (60) days, leaving business owners approximately two months to assess their marketing practices and ensure compliance.
Key Takeaways
The law does not define “advertiser” or “advertisement.” Thus, the law’s disclosure requirements could be enforced against a myriad of persons and businesses using synthetic content to advertise their services and products. For example, it would potentially extend to a real estate listing that uses AI for virtual staging of a home for sale or a home construction contractor that incorporates AI-generated renderings of a completed remodel to advertise its services.
Importantly, the intent of the advertiser does not matter; the disclosure requirement applies any time synthetic content is used “in a manner that creates a false consumer perception” about the goods or services. There is no requirement that such use be “knowing, reckless, or willful.”
Entities using synthetic content to create advertisements are encouraged to assess their current practices and determine whether their use of AI-generated content could create a false perception about their product. Until further clarification is provided by the General Assembly or other legal authority as to what type of synthetic content creates a “false consumer perception,” entities using AI content may choose to err on the side of caution in providing a clear and conspicuous disclosure in accordance with the Act or refraining from using synthetic content in advertising altogether.
KingSpry’s Business and Employment Law Practice Groups routinely assist a wide variety of business owners and organizations with legal compliance issues and are prepared to counsel business owners and marketing teams in ensuring compliance with the new disclosure requirements, should the bill become law.
This article is meant to be informational and does not constitute legal advice.
