New York has enacted a first-of-its-kind law requiring advertisers to “conspicuously” disclose the use of “synthetic performers,” generated using AI or other software algorithms, in certain advertisements. The law, codified at N.Y. Gen. Bus. Law § 396-b, took effect on June 9, 2026.
It defines a “synthetic performer” as a digitally created asset, produced through AI or a software algorithm, that creates the impression of an audiovisual or visual performance by a human performer who is not recognizable as an identifiable natural person.
The law notably does not define “conspicuously” or set any requirements for disclosure language, placement, or format, leaving companies that use AI-generated performers with limited guidance on how to comply.
While a failure to comply with the statute’s disclosure requirements carries civil penalties, it does not appear to provide for a private right of action.
Key requirements
- Disclosure requirement: A person who produces or creates an advertisement for a commercial purpose must conspicuously disclose that the advertisement includes a synthetic performer if the person has actual knowledge of that use. The requirement applies across any medium or media in which the advertisement appears.
- What “conspicuous” may mean: The law does not define "conspicuous." As a practical starting point, advertisers should consider the Federal Trade Commission's "clear and conspicuous" standard, which generally requires a disclosure to be difficult to miss, easily noticeable, and understandable to consumers.
- Scope of “synthetic performer”: Disclosure is required when an advertisement features an AI-generated performer who is not recognizable as an identifiable natural person. In other words, the law applies to generic AI avatars, but it does not apply to deepfakes of real individuals or celebrities, which are handled under separate right-of-publicity frameworks.
- Exceptions: The disclosure requirement does not apply to:
- Advertisements and promotional materials for expressive works, including motion pictures, television programs, streaming content, documentaries, video games, and similar audiovisual works, if the use of the synthetic performer in the advertisement or promotional material is consistent with its use in the expressive work
- Audio-only advertisements
- Uses of AI solely for language translation of a human performer
- Media liability carveout: The law expressly states that it does not apply to advertising media that may publish or disseminate a noncompliant advertisement. Covered media include newspapers, magazines, television networks and stations, streaming services, cable television systems, billboards, and transit advertising.
- Civil penalties: Violations may result in a $1,000 fine for a first offense and a $5,000 fine for each subsequent offense. The law does not expressly provide a private right of action, suggesting that enforcement would likely rest with the New York attorney general or another state enforcement authority.
Takeaways
Advertisers that use AI to create or feature synthetic performers should prepare now. Brands should consider:
- Reviewing vendor and agency agreements to assign responsibility for identifying synthetic performers and making required disclosures
- Auditing upcoming campaigns to confirm whether they include synthetic performers
- Training marketing, creative, and legal teams on the law's requirements
- Updating AI governance policies to address synthetic performer disclosures
- Monitoring other states for similar advertising disclosure laws
