Source: Beverly Hills Courier

Beverly Hills Courier discusses a new California law requiring explicit disclosure when artificial intelligence is used to digitally alter or "stage" real estate listings. As virtual staging tools become indistinguishable from reality, the legislation, identified as part of a broader consumer protection push (related to AB 723), obliges real estate agents and platforms to clearly watermark or label images that do not represent the physical reality of the property. This aims to prevent misrepresentation where buyers might be misled about the condition, lighting, or furniture potential of a home.

The law falls under the umbrella of "Unfair Competition" and consumer protection statutes, extending existing truth-in-advertising principles to the generative AI age. It places a legal duty on the seller to distinguish between a photograph and a digital rendering . Failure to comply could result in fines and licensure discipline for agents. This regulation highlights a specific, sectoral application of AI transparency rules, serving as a potential model for other industries where digital enhancement can cross the line into deceptive fraud.