New York legislation would require disclosure for AI-edited real estate listings
Credit: Jason Hawke CA on Unsplash
A New York State lawmaker wants real estate agents to disclose when they use artificial intelligence to edit listing photos. Assembly Member Linda Rosenthal introduced new legislation in July that aims to crack down on an increasingly common practice of using digitally staged photos when marketing an apartment or home online. Although this is nothing new in real estate, AI makes the staging more advanced, allowing even the most computer-literate New Yorkers to be tricked by the enhanced images. When potential renters show up for a tour, they feel like they’ve been “catfished,” as Curbed put it.
Not sure how this is even legal
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The bill introduced by Rosenthal, who represents parts of the Upper West Side and Hell’s Kitchen, amends the real property law to require the “disclosure of digitally altered images in an ad or other promotional material for the sale or lease” of the property. The bill also would require the listings to include the unaltered version of the image.
When elements are added, removed, or changed, like furniture, walls, and flooring, the listing should have a statement of disclosure. The text of the legislation notes that typical photo editing, like brightness, color correction, and cropping, is not considered digitally altered according to the bill.
“Online real estate platforms have increasingly turned to artificial intelligence tools and other photo editing software to alter the appearance of houses, apartments, and other properties listed for sale. The modifications can be as minimal as changing the colors of the walls or the home’s furnishings to more extreme changes like replacing the lawn or adding landscaping that does not exist,” Rosenthal wrote in her legislative justification, as reported by The Post-Journal.
“While the tools can enhance the curb appeal of a home and drive more potential buyers to view the space, the changes may also give viewers a false impression.”
California and Wisconsin have passed laws requiring agents to disclose when AI is used to change listings, as the New York Times reported. New Jersey lawmakers are also considering taking similar measures.
Rosenthal’s bill will likely be discussed when the legislature convenes in January.
In July, Mayor Zohran Mamdani released a report of recommendations based on feedback from tenants during the city’s “rental rip-off” hearings. One of the suggestions outlined included requiring disclosure for AI-altered listing images.
The city’s Department of Consumer and Worker Protection plans to introduce a rule that requires any “rental listings containing digitally altered photos include a clear and conspicuous disclosure to consumers that the photos have been modified by AI or were digitally altered.”
According to the city, when the rule is finalized and goes into effect, DCWP will “work with StreetEasy, Zillow, and other listing companies – as DCWP has done in FARE Act implementation and enforcement – to ensure that enforcement is effective.”
As CityRealty reported, the real property law in New York prohibits dishonest or misleading advertising. If you feel you have been tricked by an AI-enhanced listing, you can file a complaint with the NYS Department of State Division of Licensing Services’ Complaint Review Office.
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