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Australian businesses do not currently face a New York-style, across-the-board duty to label every AI-generated person in an advertisement. New York’s General Business Law § 396-b, effective June 9, 2026, creates a specific disclosure obligation for a narrower category of “synthetic performers.” Australia’s existing baseline is different: the Australian Consumer Law (ACL) prohibits misleading or deceptive conduct and false or misleading representations regardless of the technology used. An Australian campaign may therefore need an AI disclosure because of what consumers are led to believe, what information is omitted, or how the advertisement affects a purchasing decision—not simply because generative AI was used.
That distinction matters for companies running campaigns in both markets. New York requires a conspicuous disclosure when its statutory conditions are met. Australia requires businesses to control the advertisement’s overall impression and truthfulness. The same campaign can satisfy one regime and create risk under the other.
What New York’s law requires from 9 June 2026
New York General Business Law § 396-b(3) applies to a person who is engaged in the business of dealing in property or services and who, for a commercial purpose, produces or creates an advertisement about that property or service. The rule applies “in any medium in which the advertisement appears.” If that person has actual knowledge that the advertisement contains a synthetic performer, the person must conspicuously disclose that fact.
The law was signed in December 2025 and took effect on June 9, 2026. The Governor’s announcement described the measure as a consumer and worker protection, with Governor Kathy Hochul saying, “In New York, we are setting the rules of the road instead of letting AI run the show.” The statutory text, rather than the political description, determines whether a particular advertisement is covered.
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The five questions that determine coverage
- Who made the ad? The relevant person must be in the business of dealing in the advertised property or service and must produce or create the commercial advertisement.
- Is it a commercial advertisement? The provision concerns advertising for a property or service, not every communication containing computer-generated imagery.
- Does the ad contain a statutory synthetic performer? The definition is narrower than “anything made with AI.”
- Did the responsible person have actual knowledge? The trigger is not phrased as strict liability for an unknown asset; knowledge is an express element.
- Does an exception apply? Qualifying expressive-work promotions, audio advertisements and translation-only uses are treated differently.
If those questions point to coverage, the disclosure must be conspicuous. The reviewed enacted text does not prescribe a particular sentence, font size, location, colour or timing. It is therefore unsafe to treat a proposed bill, a media summary or another state’s rule as if it supplied New York’s exact formatting requirements.
What counts as a “synthetic performer”?
New York’s definition focuses on the impression of a human performance. A synthetic performer is a digitally created asset, or an asset reproduced or modified by computer using generative AI or a software algorithm, that is intended to create the impression that it is engaging in a visual or audiovisual performance of a human performer who is not recognizable as an identifiable natural performer.
That wording leaves important boundaries. It does not automatically cover every AI-assisted photograph, a copy-editing tool, automated ad targeting, a generated background, or an ordinary visual effect. The question is whether the asset is being used to present an apparently human performer who is not an identifiable real person, and whether the statutory commercial-advertising conditions are also met.
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Examples that may fit the definition
- A retailer creates a photorealistic, computer-generated spokesperson who appears to demonstrate a product.
- A service company generates a talking presenter for a social video and designs the character to look like a real but unidentifiable person.
- An agency digitally creates or modifies a performer’s apparent visual performance for a paid advertisement, while the result is presented as a human-like performance.
Examples that are not automatically covered
- AI-generated copy, keyword selection or audience segmentation with no synthetic human performer.
- A generated landscape, product texture or abstract animation that does not purport to be a human performance.
- Routine editing of a clearly identified real performer where the output is not intended to substitute for an unidentifiable human performer.
Borderline cases should be documented rather than resolved by assuming that “AI” is either always covered or never covered. Keep the asset brief, source files, vendor representations and approval record so the business can show what it knew and what the visual was intended to communicate.
Does the rule cover social media, websites and other digital channels?
Yes, potentially. The statute says “any medium,” so the rule is not limited to cinema, broadcast television or film marketing. A paid social post, streaming pre-roll, online display ad, landing-page video, digital-out-of-home screen or other commercial placement can fall within the provision if the other elements are present.
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The Governor’s announcement highlighted protections in the film and television industry, but that description should not be read as a limitation to those industries. Conversely, the existence of a digital channel does not by itself prove that an ad contains a synthetic performer or that the responsible person had actual knowledge.
Exceptions written into the New York statute
Three exclusions are especially important when classifying a campaign:
Promotions for expressive works
The provision does not apply to advertising or promotional material for an expressive work—including motion pictures, television programs, streaming content, documentaries, video games and similar audiovisual works—when the synthetic performer’s use in the promotion is consistent with its use in that work. A synthetic character used consistently in a promoted program is materially different from an invented spokesperson used to sell an unrelated product.
Audio advertisements
Audio advertisements are excluded. This exception does not turn a visual or audiovisual advertisement into an audio advertisement merely because it also contains narration. Classify the actual format and the role of the synthetic asset.
Language translation only
An advertisement is excluded when AI is used solely to translate the language of a human performer. “Solely” matters: adding a generated face, changing the performer’s identity or creating a new visual performance would go beyond a translation-only use.
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The statute also says it does not limit or enlarge certain rights under New York’s Civil Rights Law or other law and does not alter the protections Section 230 provides to covered interactive computer services. Those are rules of statutory construction, not a blanket immunity for advertisers, agencies or platforms.
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Penalties and what “conspicuous” means in practice
New York’s stated civil penalty is $1,000 for a first violation and $5,000 for each subsequent violation. The figures come from the current text of § 396-b; they should not be presented as a per-impression or per-viewer calculation unless an enforcing authority or court establishes that interpretation.
Because the enacted section requires a disclosure but does not set a prescribed phrase or detailed placement rule, businesses should make the notice easy to see and understand in the same context as the synthetic performance. Practical controls include:
- Use plain language such as “This advertisement features a digitally created performer,” adapted to the actual asset and reviewed for accuracy.
- Keep the notice on screen long enough to be read in a video and near the performance rather than buried in a general terms page.
- Ensure mobile, muted-video and accessible versions retain the disclosure.
- Do not let a small-print qualification conflict with an ad whose dominant impression is that a real customer or professional is speaking.
- Record who approved the label, when the team learned the asset was synthetic and where each version was distributed.
These are risk-management practices, not additional statutory wording supplied by New York. A business should obtain advice on the precise presentation for a particular campaign.
What Australian law currently requires
The Australian Treasury’s 2025 final Review of AI and the Australian Consumer Law states that “The provisions of the ACL which prohibit misleading or deceptive conduct and false and misleading representations apply regardless of the technology through which the advertising is used or enabled.” In other words, using AI does not lower the standard, and using AI does not automatically breach the ACL.
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The Australian Competition and Consumer Commission (ACCC) explains that silence can be misleading in some circumstances, especially when a business provides information but omits an important detail relevant to a consumer’s decision. The ACCC also warns that fine print and qualifications must not contradict the advertisement’s overall message.
Those principles make disclosure a potentially important Australian control where the audience could reasonably assume that a person is real, independent, a customer, a professional or the source of a claim. They do not establish a general Australian rule requiring a label whenever an image, voice or video was generated with AI. The reviewed Australian materials establish general consumer-law duties, not a matching synthetic-performer statute.
New York and Australia compared
| Issue | New York § 396-b | Australian position described in the reviewed sources |
|---|---|---|
| Core legal approach | Specific disclosure duty for a defined synthetic performer in a commercial advertisement. | General ACL prohibitions on misleading or deceptive conduct and false or misleading representations, regardless of technology. |
| Trigger | Commercial ad created or produced by a covered business, synthetic performer present, and actual knowledge. | Whether the ad’s claims, omissions, overall impression and context mislead or affect a consumer decision. |
| Media | Any medium in which the advertisement appears, subject to statutory exceptions. | No technology-specific medium rule identified in the reviewed materials. |
| Label requirement | Conspicuous disclosure of the synthetic performer when the statutory conditions are met; no fixed phrase or placement stated in the reviewed text. | No equivalent general synthetic-performer label duty established in the reviewed sources. |
| Penalties or consequences | $1,000 civil penalty for a first violation and $5,000 for a subsequent violation. | Consequences depend on the applicable ACL provision and enforcement facts. The ACCC’s $14 million Samsung water-resistance case is a non-AI example of misleading-advertising enforcement, not a synthetic-performer penalty. |
Could Australia adopt a New York-style rule?
It is a policy possibility, not an established outcome. Legislators could decide that consumers need a specific signal when an apparently human advertiser is synthetic, particularly as generated presenters become more realistic. They could also choose to rely on the existing ACL, industry guidance, privacy rules, intellectual-property law or sector-specific obligations instead.
Australian businesses should not tell customers that Australia has adopted New York’s model, and they should not predict that it will do so. The defensible present-tense position is narrower: the ACL already applies to AI-enabled advertising, while the reviewed sources do not establish a general statutory duty to label synthetic performers.
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A cross-border decision framework for campaign teams
Use separate legal questions for each market rather than applying one global assumption.
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Step 1: Map the asset and the claim
Identify every generated or modified face, body, voice, avatar and performance. Then write down what the ad appears to claim: product expertise, customer experience, medical knowledge, employment status, endorsement or simply fictional presentation. The risk often comes from the combination of the visual and the claim.
Step 2: Run the New York test
- Is the advertiser or producer in the business of dealing in the advertised property or service?
- Is the material a commercial advertisement?
- Does the asset meet the statutory synthetic-performer definition?
- Did the responsible person have actual knowledge?
- Is the content an exempt expressive-work promotion, audio advertisement or translation-only use?
- If covered, where will the conspicuous disclosure appear in every format and edit?
Step 3: Run the Australian consumer-law test
- What is the advertisement’s overall impression when viewed quickly, on a phone and with sound off?
- Could a reasonable consumer believe the person is real, identifiable, independent or qualified?
- Has the business omitted a fact that matters to the decision?
- Does fine print contradict the dominant message or appear too late to correct it?
- Can the business substantiate every express and implied representation?
Step 4: Apply the stricter practical control
If a campaign runs in both jurisdictions and a clear disclosure would not undermine a legitimate claim, using a consistent, prominent notice may reduce operational complexity. That is a business-control choice, not proof that Australian law always mandates the same label.
Operational checklist for Australian businesses
- Inventory: Maintain a register of synthetic faces, voices and performances used in paid or owned advertising.
- Contracting: Require agencies and production vendors to identify synthetic assets, the tools used and the point at which the advertiser became aware.
- Approval: Add legal and compliance review for campaigns targeted to New York residents or distributed nationally from a New York-facing channel.
- Version control: Check disclosures after cropping, translation, dubbing, captioning, platform resizing and short-form edits.
- Evidence: Keep substantiation for product claims and records showing how the audience would understand the presenter.
- Monitoring: Recheck campaigns when a real performer is replaced, an avatar is made more realistic or a fictional character is moved into an unrelated product endorsement.
The practical bottom line
New York’s law is a targeted disclosure rule, not a ban on synthetic advertising and not a rule covering every AI-assisted asset. From June 9, 2026, a covered commercial-ad producer with actual knowledge of a statutory synthetic performer must make that fact conspicuous, subject to the listed exceptions and the stated $1,000/$5,000 civil penalties.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchFor Australia, the immediate compliance task is different. Test the ad’s truthfulness, omissions and overall impression under the ACL, and disclose synthetic involvement when leaving it undisclosed could cause consumers to misunderstand who is speaking or what is being represented. Whether Australia later adopts a dedicated label requirement remains a policy question; it is not the current rule established by the reviewed Treasury and ACCC materials.
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