Relates to digital representations in real estate listings
This bill would regulate how digital media is used in New York real estate advertising and listings. It defines “digital representation” broadly to include images, videos, virtual tours, and other immersive or interactive media, and it prohibits the use of altered or enhanced visuals that materially misrepresent a property’s condition, features, layout, dimensions, or spatial relationships. The bill also requires clear and conspicuous disclosures when images or tours have been materially altered, when virtual staging is used, or when AI-generated, conceptual, reconstructed, or proposed elements are shown instead of the property as it actually exists.
The bill is aimed at preventing misleading real estate marketing practices, especially where digital editing could hide defects, add nonexistent features, or create an inaccurate impression of a home or building. It preserves the use of ordinary visual enhancements that do not materially affect a consumer’s understanding, and it allows depictions of planned remodeling, reconstruction, or new construction so long as they are clearly labeled as conceptual or proposed. The Department of State would be authorized to issue guidance and rules to implement the law, and the Attorney General could enforce it under the state’s consumer protection laws.
The bill would add a new section to the General Business Law and amend the Real Property Law to make misleading digital real estate advertising an unfair, deceptive, or abusive act and false advertising. It would also tie violations by licensed brokers and salespersons to disciplinary consequences under Real Property Law section 441-c, including license suspension, revocation, or fines, and expressly authorize the Department of State and Attorney General to enforce the new requirements. In practical terms, it would impose disclosure and labeling obligations on real estate brokers, salespersons, and others who market property using edited photos, virtual staging, AI-generated tours, or other digital renderings.
The bill appears to reflect a consumer-protection approach and is framed as a response to the growing use of digital and AI-enhanced marketing in real estate. Based on the text and the absence of recorded votes or committee debate in the provided materials, the measure appears to have been introduced in a generally favorable policy context, with its purpose focused on transparency and preventing consumer deception. The bill’s structure suggests support for modern marketing tools so long as they are not misleading.
The main point of contention is likely the line between permissible enhancement and material misrepresentation. Real estate professionals may be concerned that the bill could create compliance uncertainty around common practices such as photo editing, virtual staging, and digitally enhanced tours, especially where the standard turns on what a “reasonable consumer” would understand. Another possible issue is the treatment of AI-generated or conceptual imagery, which the bill allows only with clear labeling; supporters would likely view this as necessary disclosure, while critics may argue it could burden marketing flexibility or create enforcement ambiguity.