Pennsylvania Requires Clear Labels on AI-Generated Ads Starting Dec 2026
Pennsylvania passed a law requiring disclosures on AI-generated or modified ads.
Why it matters: This law introduces new compliance obligations for legal teams advising marketers and advertisers. It reflects increasing regulatory scrutiny of AI use in commercial advertising and could signal similar moves in other states.
- Signed on October 22, 2026, by Governor Josh Shapiro as Act 99 of 2026 (Senate Bill 806).
- Requires conspicuous disclosures on ads with AI-generated or significantly AI-modified content to prevent false consumer perceptions.
- Disclosure must appear with the first instance of synthetic content in the same medium, be permanent or very hard to remove if technically feasible.
- Effective December 21, 2026, with enforcement by the Pennsylvania Attorney General and district attorneys, including fines up to $3,000 plus legal costs.
On October 22, 2026, Pennsylvania Governor Josh Shapiro signed Senate Bill 806 into law, creating the Artificial Intelligence Deceptive Advertising Act, also known as Act 99 of 2026. This legislation requires advertisers to clearly disclose when their ads contain AI-generated or substantially AI-altered content that could mislead consumers about the nature, origin, or authenticity of advertised goods or services.
The mandated disclosures must be clear and conspicuous. They should appear the first time the synthetic content is presented, be in the same medium as the ad, and, where technically feasible, be permanent or extraordinarily difficult to remove. This aims to enhance transparency around AI's role in ads.
The law becomes effective 60 days after enactment—December 21, 2026. Enforcement is entrusted solely to the Pennsylvania Attorney General and relevant district attorneys, who can seek injunctions and impose civil fines up to $3,000, as well as recover attorneys' fees and court costs.
Legal experts note the Act adds to a growing patchwork of state-level AI advertising regulations. Alan S. Kaplinsky and John L. Culhane, Jr. observe that it "adds another state-level requirement to the evolving legal framework governing the use of generative AI in commercial communications." Meanwhile, Holland & Knight attorneys highlight that many provisions are ambiguously worded, giving the Pennsylvania AG considerable discretion in enforcement. Daniel J. Barsky et al. explain that this ambiguity may pose challenges for advertisers striving to comply.
With Pennsylvania joining states like New York and California in regulating AI-driven ads, legal teams should prepare to advise clients on these evolving disclosure requirements to avoid penalties and ensure ethical advertising.
By the numbers:
- $3,000 — maximum civil fine for violations under the Act
- December 21, 2026 — effective date of the Artificial Intelligence Deceptive Advertising Act
- October 22, 2026 — date Governor Josh Shapiro signed the bill into law
Yes, but: Some key aspects of the law, including what exactly constitutes a false consumer perception and how enforcement will unfold, remain unclear, potentially complicating compliance efforts.
What's next: Legal teams should monitor guidance from the Pennsylvania Attorney General on enforcement standards and prepare for increased state-level AI advertising regulations.