New AI Advertising Disclosure Law Is Now in Effect, and Amazon Sellers Face New Requirements

Steven Pope
AI Advertising Disclosure Law

Under the new AI advertising disclosure law, businesses using AI-generated human-like performers in advertisements must provide clear disclosures and review marketing processes to meet compliance requirements.

The use of AI-generated performers is no longer just a creative decision for advertisers. It is increasingly becoming a compliance issue as regulators introduce new rules around transparency in digital marketing.

The AI advertising disclosure law is one of the first measures aimed specifically at advertisements featuring synthetic human-like performers. For Amazon sellers, the development signals a need to review how AI-generated content is used across advertising and promotional campaigns.

New York Law Requires Disclosures for Synthetic Performers in Ads

According to a McDermott Law article, the AI advertising disclosure law officially took effect on June 9, 2026, creating new disclosure requirements for advertisements that contain certain AI-generated or digitally created human-like performers. The law is codified under N.Y. General Business Law § 396-b and reflects a broader push for transparency in commercial content created with artificial intelligence.

Under the New York AI advertising law, advertisers must conspicuously disclose when an advertisement contains a synthetic performer if they have actual knowledge that such a performer appears in the ad. The requirement applies to advertisements created for commercial purposes across a wide range of formats, including digital advertising, social media campaigns, online video ads, sponsored content, and streaming advertisements.

The law focuses on synthetic performers rather than all AI-generated content, meaning disclosure requirements are triggered only when a human-like digital asset is used in a visual or audiovisual performance. Depending on how they are used, AI-generated ads featuring avatars, AI-created models, synthetic voices, or other digitally produced human-like elements could fall within the scope of the law.

Businesses that create or deploy advertising content using generative AI are being encouraged to review their marketing practices, advertising review procedures, and vendor relationships to determine whether disclosures may be required. For brands working with an Amazon agency or other marketing partners, the announcement highlights the importance of identifying synthetic performers and maintaining records related to AI-generated advertising content.

Civil Penalties Apply to Ads That Violate Disclosure Requirements

For sellers running Amazon advertising campaigns that use AI-generated spokespersons, avatars, or other human-like digital performers, the new requirements create a compliance risk that extends beyond traditional creative review. The AI advertising disclosure law applies to advertisements that could reach a New York audience, regardless of where the advertiser, agency, or brand is located.

Eight Oh Two reports that the most immediate consequence is financial exposure through civil penalties tied to noncompliant advertisements. Violations can result in a $1,000 penalty for a first offense and $5,000 for each subsequent offense, creating additional risk for brands running large-scale campaigns with the same creative assets.

Compliance Issue Potential Impact on Sellers
Ad contains a synthetic performer without disclosure
May trigger a violation under the law
First violation
$1,000 civil penalty
Subsequent violations
$5,000 civil penalty per violation
National campaigns reaching New York audiences
Subject to the law’s disclosure requirements
AI-generated human likenesses in ads
Require review to determine disclosure obligations

The law arrives as advertising platforms continue expanding AI-powered creative tools that can generate realistic human figures and marketing assets. Because platforms do not currently apply automatic disclosures to AI-generated human performers, responsibility for compliance remains with the advertiser rather than the technology provider.

The broader concern for sellers is that New York’s measure could represent the beginning of a larger regulatory trend driven by emerging AI transparency laws. Businesses that fail to build disclosure reviews, creative checks, and documentation processes into their workflows may find it more difficult to adapt as similar requirements appear in other jurisdictions.

AI Advertising Disclosure Law Now Active, Amazon Sellers Face Rules

The AI advertising disclosure law is now in effect in New York, requiring businesses to clearly disclose when advertisements include AI-generated synthetic performers. The rule applies directly to commercial advertising content, including AI-generated ads used across digital platforms and marketplace campaigns.

The New York AI advertising law defines synthetic performers as human-like digital assets created through AI or software that appear to be real human performers. For Amazon sellers running Amazon advertising campaigns with AI marketing compliance workflows, this means any ad creative featuring AI-generated human likenesses may trigger disclosure obligations.

Failure to comply with the AI advertising disclosure law carries civil penalties of $1,000 for the first violation and $5,000 for each additional violation. Enforcement is expected to be handled by state authorities, and the law applies broadly to advertising that can reach New York audiences, including national campaigns run through Amazon advertising systems.

The development reflects broader AI transparency laws focused on how synthetic media is used in commercial messaging. For Amazon sellers, this increases compliance pressure around ad creatives that use AI-generated spokespersons, avatars, or human-like promotional visuals in paid campaigns.

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Steven Pope

Hi I’m Steven, founder of My Amazon Guy, a 500+ person Amazon Seller Central agency out of Atlanta, GA. We growth hack ecommerce and marketplaces through PPC, SEO, design, and catalog management.

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