New York law forces retailers to label AI-generated models in ads

A grievance lodged anonymously with the New York attorney general’s office accuses Athletifreak, a small New Jersey-based one outlet apparel retailer, of using artificial-intelligence generated models in its online ads without the mandated disclosure. The complaint is among just two that have been recorded since New York enacted its synthetic-performer disclosure statute on June 9, a law championed by Governor Kathy Hochul as a measure to protect shoppers and human models from deceptive practices.

A second filing alleges that British eyewear brand Bloobloom also ran ads featuring entirely AI-generated humans aimed at New York consumers. State officials have not provided an update on the status of the complaints, and neither company has replied to outreach attempts. The rule has already prompted Amazon to warn third-party sellers that AI-generated imagery must be labeled, though penalties for repeat violations can reach $5,000. Experts say the regulation could influence other states and reshape how small brands allocate resources for visual marketing.