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New California Law Requires Real Estate Agents and Brokers to Disclose AI Alterations in Listings
Artificial intelligence and digital marketing have become ubiquitous in real estate advertising. The widespread use of AI creates risk for consumers who don't know whether images shown online or on the multiple listing services are real. A new California law that goes into effect in January 2026 tries to draw a clear line: innovation is welcome but deception is not.
The state's new law requires licensed real estate brokers and salespersons to disclose when images used in advertisement and promotional materials have been digitally altered and to provide access to the original, unaltered images. The law is intended to enhance transparency in real estate advertising and to reduce the risk of consumer deception arising from image editing, virtual staging, or other digital modifications.
Who Is Covered
The law applies to real estate agents, brokers, developers, and marketing staff involved in property advertising. It encompasses advertisements including those in print and online.
Key Requirements
According to the new law, a disclosure is required if the image has been digitally modified using photo-editing software or AI to add, remove, or change physical elements of the property. This includes: (1) adding or removing furniture, fixtures, appliances, or flooring; (2) changing paint colors, landscaping, or building exteriors; (3) altering views, neighboring structures, or street features visible from the property; and (4) using virtual staging or AI tools that create a representation of items that don't actually exist in the home. For all intents and purposes, any enhancement that changes the property's condition or layout triggers a disclosure requirement.
On the other hand, agents are free to make standard photo edits that simply improve clarity or accuracy without changing the substance of the property. The law explicitly allows for: (1) lighting or exposure corrections; (2) color or white-balance adjustments; (3) image sharpening or straightening; and (4) cropping, resizing, or angle adjustments. Simply put, an agent can make the property photo look better, but not different.
Advertisements containing any digitally altered image must include a clear and conspicuous disclosure that the image has been digitally altered and that the unaltered image may be accessed through a link, URL, or QR Code. In addition, the link, URL, or QR Code showing the unaltered images must be provided in the disclosure. The disclosure should be placed close to the image.
Next Steps
Brokerages and agents should complete policy updates and
training prior to the effective date of the new law to ensure that
all new and existing listings with altered imagery carry the
required disclosures.
Our team at Lewis Brisbois is happy to assist clients ensure
compliance with the new law as well as provide guidance and support
to those in the real estate industry with questions regarding all
aspects of regulatory compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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