Pennsylvania will require labels on AI-generated ads

Ads in Pennsylvania that use artificial intelligence to mislead shoppers will soon need a label. The Verge reported that Gov. Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act on Thursday.

The rule does not start right away. CBS Pittsburgh reported that the law will take effect in 60 days, and it said Pennsylvania is among the first states to require disclosures on AI-generated ads.

Key facts

• The Verge reported that Shapiro signed the AI Deceptive Advertising Act on Thursday.
• CBS Pittsburgh said the law takes effect 60 days after signing.
• The bill text says covered ads must state that the content was generated or modified using AI.
• The Verge said parody, satire, commentary, criticism and evidently fictional content are exempt.
• CBS Pittsburgh reported that the Pennsylvania Office of Attorney General will enforce the rule.

What the law requires

The core rule is about honesty in selling.

The wording of that label is set out in the law. The bill text says the notice must say the ad includes content generated or modified with artificial intelligence, and it must appear the first time that content is shown.

The label has to match the ad. The Verge reported that the label must be in the same format as the ad itself, covering still images, video and audio.

Where an ad was made does not matter. The Verge said the rule applies to ads created outside Pennsylvania if they run in the state.

Not all AI content falls under the rule. The Verge reported that the law exempts parody, satire, commentary or criticism, along with content that is evidently fictional.

The sponsor also drew a line around elections. CBS Pittsburgh reported that state Sen. Nick Pisciottano said the rule does not affect political ads.

Who enforces it

CBS Pittsburgh reported that state Sen. Nick Pisciottano sponsored the bill. He described its goal plainly to CBS Pittsburgh: "It's really to protect consumers."

Enforcement rests with state lawyers. CBS Pittsburgh said the Pennsylvania Office of Attorney General is in charge of enforcement, and Pisciottano said violators could face a fine and even possible jail time.

The bill text describes a civil path. Under the bill text, the Attorney General or the right district attorney may file a civil action over violations.

Pisciottano said companies, not individual users, would face punishment. CBS Pittsburgh reported that Pisciottano said penalties would fall on AI companies rather than individual users.

The law still has gray areas. The Verge said the law leaves loopholes, including that the test for when content counts as significantly modified is subjective.

Political ads are a separate issue

The new law leaves campaign ads out, but AI is already showing up in them. Axios reported that the Wesleyan Media Project counted $137 million spent on 220 AI-generated political ads through Oct. 11, mostly by Republicans.

Rules for those ads vary by state. Axios reported that four states ban certain uses of AI deepfakes in political ads, and 27 others require some kind of disclosure. Axios also reported that no federal law directly regulates AI-generated political ads.

The issue has reached Pennsylvania's own governor's race. Axios reported that an ad from Republican governor candidate Stacy Garrity shows an AI-generated version of Shapiro, and Shapiro spokesperson Manuel Bonder called it dishonest.

Background

The bill grew out of complaints about scams. CBS Pittsburgh reported that Pisciottano said groups representing older people told lawmakers their members were being scammed by fake AI ads.

Some of the problem is easy to spot online. CBS Pittsburgh reported that AI-generated food images have become common in restaurant ads on Facebook.

What it means for you

The law reaches a wide range of businesses. The Verge said advertisers from large companies running TV commercials to restaurants printing flyers must label covered AI ads.

Shoppers should start to notice the change. CBS Pittsburgh reported that Pennsylvania consumers who see ads on Facebook or elsewhere online should find AI disclaimers on covered ads.

Not every ad will carry a label. The Verge said satire, parody, commentary, criticism and evidently fictional content are exempt, and CBS Pittsburgh reported that Pisciottano said political ads are not affected.

Practical steps

• Check ads for a label once the rule starts. CBS Pittsburgh said shoppers in Pennsylvania can look for AI disclosures after the law takes effect in 60 days.
• Look at the first appearance of the content. The bill text says the disclosure must appear the first time the AI content is shown.
• Read the law yourself. The full bill text is posted by the Pennsylvania General Assembly.

What happens next

The countdown began with the governor's signature on Thursday. CBS Pittsburgh reported that the law takes effect in 60 days.

Other governments may follow. CBS Pittsburgh reported that Pisciottano said he expects the federal government or many other states to adopt similar rules.

Key details are still unsettled. Exact fine amounts in the final law have not been spelled out, and it is not yet clear how officials will judge what counts as significantly modified or evidently fictional.

FAQ

When does the law take effect? CBS Pittsburgh said the law takes effect 60 days after Shapiro signed it on Thursday.

Does it cover political ads? No. CBS Pittsburgh reported that Pisciottano said the rule does not apply to political ads.

Who enforces it? CBS Pittsburgh reported that the Pennsylvania Office of Attorney General enforces the rule.

Does it apply to ads made in other states? Yes. The Verge said ads made elsewhere are covered if they air in Pennsylvania.

Are jokes and satire covered? No. The Verge reported that parody, satire, commentary, criticism and evidently fictional content are exempt.