Pennsylvania law mandates clear labels on AI-generated ads
Pennsylvania enacts law requiring disclosure on AI-generated or modified advertisements.
Why it matters: This sets a precedent for AI transparency in advertising, affecting advertisers and legal compliance nationwide. Corporate counsel must monitor these evolving regulations to manage risk and consumer trust.
- Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act (SB 806) on October 22, 2026.
- The law mandates clear disclosures on any advertisement with AI-generated or significantly AI-modified content across all media formats.
- Disclosures must be permanent or very hard to remove and appear in the same medium as the ad content.
- Violations can trigger civil fines up to $3,000 per incident; the law takes effect December 21, 2026.
- Pennsylvania is the third state to enact such legislation after New York and California.
On October 22, 2026, Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act (SB 806) into law. This legislation requires that any advertisement containing content generated or significantly modified by artificial intelligence must include a clear and conspicuous disclosure label.
The disclosure must explicitly state that the advertisement content is AI-generated or significantly AI-modified. It must be displayed in the same medium as the advertisement—whether still images, video, audio, or text—and be permanent or extraordinarily difficult to remove, ensuring ongoing transparency. This requirement applies to ads across all media formats, addressing a broad scope of marketing channels.
The law includes enforcement provisions, allowing civil fines of up to $3,000 per violation. It takes effect 60 days after enactment, on December 21, 2026. Pennsylvania thus joins New York and California as the third state to implement such measures regulating AI use in advertising.
Governor Shapiro highlighted the law's purpose: "Artificial intelligence is transforming how we live, work, and learn — and Pennsylvania is embracing it responsibly. But as this technology advances, we will not allow bad actors to exploit our kids, mislead seniors, or impersonate licensed professionals."
While specific guidelines on what constitutes "significantly AI-modified" content remain unclear, this legislation marks a significant step toward AI transparency in advertising. Legal professionals and corporate counsel should track enforcement developments and evolving standards to ensure compliance and protect consumers.
By the numbers:
- $3,000 — maximum civil fine per violation
- 60 days — time from signing to law taking effect
- 3 — number of states with AI ad disclosure laws (PA, NY, CA)
Yes, but: The law lacks detailed definitions of "significantly AI-modified" content and specific enforcement procedures, which may complicate compliance efforts initially.
What's next: The law takes effect on December 21, 2026, starting the 60-day countdown for advertisers to comply with disclosure requirements.