New York State legislators Michael Gianaris and Linda Rosenthal sponsored a measure that amended the state's advertising rules to require clear notices when ads contain AI-generated images of people (Practical Ecommerce). Amazon responded by telling third-party sellers to identify product content featuring AI-generated images of people before uploading it, with the marketplace potentially displaying a notice to shoppers (Practical Ecommerce). The regulation applies broadly to advertisements concerning the use of people in products for sale, including lifestyle photographs, on-model images, and product demonstrations (Practical Ecommerce).
For commerce practitioners, the law creates uneven competitive pressure. Large retailers can invest in traditional photoshoots with models, photographers, and extensive post-production manipulation while avoiding the disclosure requirement, so long as production remains tied to a real performer (Practical Ecommerce). Smaller merchants using generative AI to create similar product images from a single photograph must include a warning that will likely reduce the image's effectiveness (Practical Ecommerce). The law threatens to reverse generative AI's role as a creative democratizer that has leveled the playing field between small businesses and large corporations by reducing the need for expensive photoshoots (Practical Ecommerce).
Beyond New York, merchants face a state-by-state compliance patchwork. California's AI Transparency Act, Tennessee's ELVIS Act, and Utah's generative AI disclosure requirements create overlapping obligations that national retailers must interpret and implement (Practical Ecommerce). Amazon's policy demonstrates how one state's regulation can influence ecommerce practices nationally, as the marketplace applies disclosure rules to product listings regardless of where shoppers reside.