New York State Assembly Member Linda Rosenthal introduced legislation in July that would require real estate agents and landlords to disclose when AI or other digital tools have altered listing photos. The bill targets a practice that has become more sophisticated as AI editing tools let sellers add furniture, change wall colors, or insert landscaping that does not exist.
For brokers and agents, the stakes are practical: prospective buyers and renters who feel misled by enhanced images may walk away from deals or file complaints. The legislation would amend state real property law to require disclosure in any ad or promotional material for a sale or lease.
What the bill requires
Under the proposed law, listings with digitally altered images would need to include a statement of disclosure and the unaltered version of the photo. Changes to furniture, walls, flooring, or other elements would trigger the requirement. Standard photo adjustments such as brightness, color correction, and cropping would not count as digital alteration.
Rosenthal wrote in her legislative justification that modifications "can be as minimal as changing the colors of the walls or the home's furnishings to more extreme changes like replacing the lawn or adding landscaping that does not exist." She added that while the tools can drive more buyers to view a property, "the changes may also give viewers a false impression."
A growing regulatory trend
New York is not alone. California and Wisconsin have already passed laws requiring agents to disclose AI-modified listings, and New Jersey lawmakers are weighing similar measures. Rosenthal's bill will likely come before the legislature when it reconvenes in January.
New York City is moving on its own track. Mayor Zohran Mamdani's office released recommendations in July based on tenant feedback from the city's "rental rip-off" hearings, including a requirement for AI-altered listing disclosures. The Department of Consumer and Worker Protection plans to introduce a rule mandating that rental listings with digitally altered photos carry a "clear and conspicuous disclosure." Once finalized, DCWP said it will coordinate with StreetEasy, Zillow, and other listing platforms on enforcement.
Professionals working with listing photos should note that New York's real property law already prohibits dishonest or misleading advertising. Consumers who feel deceived by an AI-enhanced listing can file a complaint with the NYS Department of State Division of Licensing Services' Complaint Review Office. For agents and brokers, the proposed rules add a compliance layer to the AI Learning Path for Real Estate Brokers that many firms are already adopting.
Why this matters for real estate and construction professionals
If the bill passes, every listing team in New York will need a process for identifying which photos have been altered and for publishing unedited versions alongside them. That means training staff on what counts as material alteration versus routine correction, and auditing marketing workflows before listings go live. The city's parallel rulemaking could arrive even sooner. Teams that prepare now by documenting their photo editing practices will avoid last-minute compliance scrambles and reduce exposure to misleading advertising complaints. For broader context on how AI is changing the industry, see AI for Real Estate & Construction.
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