Pennsylvania has become one of the first US states to require labels on AI-generated advertising. Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act — Senate Bill 806, now Act 99 of 2026 — on October 22, and the disclosure requirement takes effect December 21, 2026, sixty days after signing.
The law targets a specific harm rather than all AI use in ads. A disclosure is required when an advertiser uses AI-generated or significantly modified images, video, or audio in a way that creates a false consumer perception about the nature, origin, or authenticity of the goods or services advertised. When triggered, the disclosure must state that the ad contains content modified or generated using AI, appear when the content is first presented, and use the same medium as the content itself. Where technically feasible, it must also be permanent or very difficult to remove.
Notably, the rule applies regardless of where an ad was produced, so a commercial made in another state still needs a label if it airs in Pennsylvania — a detail that may push national advertisers toward standardizing labels everywhere. The law exempts text-only content, evidently fictional material, and parody, satire, commentary, and criticism.
Enforcement sits with Pennsylvania’s attorney general and district attorneys, who may seek injunctions or civil penalties of up to $3,000 plus legal fees; there is no private right of action. Key terms such as “significantly modified” and “false consumer perception” remain open to interpretation, so advertisers using AI creative tools like Creatify, Vidau, and Midjourney should build disclosure into their production workflow now rather than waiting for test cases.
Source: Daily AI Brief, based on a Loeb & Loeb analysis
