Crackdown Urged on AI-Altered Real Estate Ads as NSW Leads Privacy and Transparency Reforms

Calls for Nationwide Action on AI-Altered Real Estate Ads to Protect Renters

The New South Wales Tenants Union has urged a nationwide crackdown on misleading rental advertisements that use artificial intelligence to alter property images and hide faults. This follows new laws introduced by the NSW government targeting deceptive practices in real estate advertising fueled by digital manipulation.

The legislation requires mandatory disclosure when images in rental ads have been digitally altered to conceal defects or mislead prospective tenants. Examples cited include AI-generated furniture depicting a double bed in a bedroom that only fits a single, or photos modified to obscure property damage.

Protecting Renters’ Privacy and Preventing Misleading Ads

With about one-third of NSW residents renting their homes, the government highlighted the vast amount of personal data collected from renters weekly—an estimated 187,000 pieces of identification. This includes requests for personal photos, social media details, and even revealing tattoos. New laws aim to limit unnecessary data collection by introducing a standard rental application form that clearly defines permissible information.

Leo Patterson Ross, CEO of the Tenants’ Union of NSW, emphasized the need for these protections across Australia. He pointed out that while some progress has been made in standardizing applications, many states still lack safeguards against the wide range of data collection methods and the use of misleading advertising.

Ross described the rise of fake photography as a growing source of frustration. Misleading images can cause renters to waste time on unsuitable properties and may artificially inflate demand and rent prices, pressuring applicants to act hastily or offer more than the advertised rent.

Proposed Additional Disclosures for Transparency

Ross suggested further measures for transparency, including:

• Disclosing the age of photos used in ads
• Providing repair and compliance histories
• Sharing energy efficiency ratings
• Including floor plans and mandatory disclosures upfront

These steps aim to ensure renters receive an authentic representation of rental properties and avoid surprises after signing leases.

Government and Industry Response

Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, stated renters deserve dignity and privacy, extending to their personal information. He expressed hope other states and territories would adopt similar reforms, noting that regulation is an ongoing process aimed at improving consumer protection in the property market.

Penalties under the new laws include fines up to $49,500 for corporations and $11,000 for individuals breaching privacy rules. Non-disclosure of altered images carries fines up to $22,000 for businesses and $5,500 for individuals.

NSW Rental Commissioner Trina Jones highlighted the risks of cyber breaches and data theft, pointing out that a cyber breach occurs in Australia every six minutes. She stressed renters should not have to sacrifice privacy to secure housing.

Tim McKibbin, CEO of the Real Estate Institute of NSW, acknowledged that some personal data collection is necessary for real estate transactions. However, he agreed that once the need passes, the information should be deleted. He also condemned the use of inaccurate photography as a false and misleading practice.

Conclusion

The NSW initiative marks a significant step toward protecting renters from deceptive advertising and excessive data demands. Expanding these protections nationally would promote fairness and transparency in the rental market while safeguarding personal privacy.

For government professionals interested in the intersection of AI, privacy, and regulation, staying informed about developments in real estate advertising standards is essential. These reforms reflect broader concerns about AI’s role in consumer rights and data security.

Learn more about AI and privacy regulations at Complete AI Training.