New York’s first-in-the-nation law requiring advertisers to disclose the use of AI-generated “synthetic performers” is generating its first consumer complaints, according to Bloomberg Law, in an early test of how far state regulators can go in policing AI in marketing.
The synthetic performer disclosure law took effect in June and requires companies to state explicitly when AI-generated synthetic performers, digitally created media that appear as real people, are used in advertisements. Consumers cannot sue companies directly under the law and must instead rely on the New York Attorney General’s Office to enforce it. The office said it is already fielding complaints from citizens.
Governor Kathy Hochul signed the measure in December 2025, framing it as a consumer protection and labor measure. “In New York, we are setting the rules of the road instead of letting AI run the show,” Hochul said when the law took effect, adding that disclosure “protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation.”
SAG-AFTRA Chief Labor Policy Officer and New York Local Executive Director Rebecca Damon said the law “protects consumers and workers from the risks posed by rapidly developing AI technologies” and “mitigate[s] performance replacement.”
Industry Attorneys Question Scope
Advertising attorneys told Bloomberg Law the law’s exceptions undercut its purpose. Samantha Rothaus, a partner at Davis+Gilbert LLP, pointed to carveouts for audio and AI-generated voices as a gap, noting “voice-over performers are performers too.” She also said the law does not specify when a disclosure requirement is triggered, for example, whether a partial body shot or a crowd scene in the background requires one, leaving compliance uncertain. Robert Freund of Robert Freund Law APC questioned whether disclosure alone addresses deception, saying “it’s not immediately obvious that there’s harm or the possibility of being deceived in a way that matters simply based on the fact that somebody appears real when they’re not.”
Both attorneys connected the law to the broader growth of AI-generated content in Influencer Marketing. Freund said cheaper, faster generation tools mean “you can expect there will be more noncompliance” with existing disclosure rules already required by the Federal Trade Commission. Rothaus noted that when an influencer account itself is fictional, the stakes rise: “When the whole thing is fictional, and you’re not aware that it’s fictional, that’s where people really can get misled.”
Other states are moving in parallel. Hawaii enacted a nearly identical law in July, and California’s legislature passed its own synthetic performer disclosure bill at the end of August, which is now on Governor Gavin Newsom’s desk. The European Union’s AI Act transparency requirements, which mandate watermarks and disclosures for AI-generated or manipulated content, took effect in August. “The writing is on the wall in terms of more of these regulations leaning toward disclose, disclose, disclose,” Rothaus said.
Dragomir is a Serbian freelance blog writer and translator. He is passionate about covering insightful stories and exploring topics such as influencer marketing, the creator economy, technology, business, and cyber fraud.
New York’s first-in-the-nation law requiring advertisers to disclose the use of AI-generated “synthetic performers” is generating its first consumer complaints, according to Bloomberg Law, in an early test of how far state regulators can go in policing AI in marketing.
The synthetic performer disclosure law took effect in June and requires companies to state explicitly when AI-generated synthetic performers, digitally created media that appear as real people, are used in advertisements. Consumers cannot sue companies directly under the law and must instead rely on the New York Attorney General’s Office to enforce it. The office said it is already fielding complaints from citizens.
Governor Kathy Hochul signed the measure in December 2025, framing it as a consumer protection and labor measure. “In New York, we are setting the rules of the road instead of letting AI run the show,” Hochul said when the law took effect, adding that disclosure “protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation.”
SAG-AFTRA Chief Labor Policy Officer and New York Local Executive Director Rebecca Damon said the law “protects consumers and workers from the risks posed by rapidly developing AI technologies” and “mitigate[s] performance replacement.”
Industry Attorneys Question Scope
Advertising attorneys told Bloomberg Law the law’s exceptions undercut its purpose. Samantha Rothaus, a partner at Davis+Gilbert LLP, pointed to carveouts for audio and AI-generated voices as a gap, noting “voice-over performers are performers too.” She also said the law does not specify when a disclosure requirement is triggered, for example, whether a partial body shot or a crowd scene in the background requires one, leaving compliance uncertain. Robert Freund of Robert Freund Law APC questioned whether disclosure alone addresses deception, saying “it’s not immediately obvious that there’s harm or the possibility of being deceived in a way that matters simply based on the fact that somebody appears real when they’re not.”
Both attorneys connected the law to the broader growth of AI-generated content in Influencer Marketing. Freund said cheaper, faster generation tools mean “you can expect there will be more noncompliance” with existing disclosure rules already required by the Federal Trade Commission. Rothaus noted that when an influencer account itself is fictional, the stakes rise: “When the whole thing is fictional, and you’re not aware that it’s fictional, that’s where people really can get misled.”
Other states are moving in parallel. Hawaii enacted a nearly identical law in July, and California’s legislature passed its own synthetic performer disclosure bill at the end of August, which is now on Governor Gavin Newsom’s desk. The European Union’s AI Act transparency requirements, which mandate watermarks and disclosures for AI-generated or manipulated content, took effect in August. “The writing is on the wall in terms of more of these regulations leaning toward disclose, disclose, disclose,” Rothaus said.
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