What the Law Requires
Pennsylvania Governor Josh Shapiro signed the AI Deceptive Advertising Act on October 22, 2026. The law requires a disclosure label on advertising created or materially altered with the help of artificial intelligence that creates a false impression in consumers about a product or service. The label itself must be in the same form as the advertisement itself. That is, in an image advertisement the label appears inside the image, in a video inside the video, and in an audio advertisement in audio form. This requirement is set so that the label is visible to the viewer in the very form in which the advertisement reaches them. The law makes Pennsylvania one of the first U.S. states to introduce such an obligation.
The law's main requirement is expressed simply: the viewer must learn from the label that the advertisement was created or materially altered with the help of artificial intelligence. The label cannot be separated from the advertisement's main form. For example, a note written in the description of a video advertisement cannot replace a label inside the video itself. The same logic applies to images and audio. The aim is for the label to be visible or audible at the moment the viewer is watching or listening to the advertisement itself. The governor explained this rule as follows:
"Pennsylvanians have the right to know that artificial intelligence is being used in advertisements, and when it is being used."
Which Advertisements Are Covered, and Where They Were Produced Does Not Matter
The law's scope is determined by the form of the advertisement. An advertisement in image, video, or audio form that was created with the help of artificial intelligence or materially altered and creates a false impression in consumers falls under the disclosure requirement. Here the decisive criterion is not the form of the advertisement, but that it was created or materially altered with the help of artificial intelligence. Therefore a minor edit to an image and an advertisement fully created with the help of artificial intelligence are not in the same category in the law's text, but both cases are assessed under the criterion set by the law. The law does not precisely define which alteration counts as material; that question is left open in the law's text.
The rule is not limited by where the advertisement was produced. An advertisement produced in another state may also require the Pennsylvania label if it is expected to be shown in Pennsylvania. This means that the place of production does not automatically cancel the requirement. The decisive factor is whether the advertisement is expected to reach a Pennsylvania audience. Advertisers must therefore act based not on where the advertisement was produced, but on where it will be shown. This rule also applies to advertisements distributed across state lines.
Which Materials Are Exempt
The law does not cover all AI materials. Parody, satire, commentary, criticism, clearly fictional material, and text-only content are exempt from the law's scope. These exemptions draw a line between creative and critical materials and deceptive advertising. That is, material in the form of parody or satire, if it is not used to mislead viewers for advertising purposes, does not fall under the disclosure requirement. The same logic applies to commentary and criticism: an opinion expressed about an advertisement or phenomenon, if it is in a clear form of commentary or criticism, remains within the exemption.
At the same time, the law does not precisely define two important concepts. The first is what counts as materially altered. The second is what counts as creating a false impression in consumers. The law's text gives no definitions of these concepts. This means that in practice the law's text itself does not precisely show which advertisement counts as materially altered and which case is assessed as creating a false impression. Although the list of exempt materials is precise, the openness of these two concepts remains the main uncertainty in determining the law's scope.
When It Takes Effect and What Penalties Apply for Violations
The law takes effect on December 21, 2026. From that date the disclosure requirement is considered in force. Less than two months pass between the signing date and the effective date. This period is considered time given to advertisers to adapt their materials to the new requirement, although the law's text does not separately explain the purpose of this period. Importantly, the effective date is precisely defined: December 21, 2026. After that date, a disclosure label becomes mandatory for advertisements distributed from then on that create a false impression in consumers.
Compliance with the law is overseen by the Pennsylvania Attorney General and district attorneys. In the event of a violation, they may seek injunctive relief or civil penalties of up to $3,000 per violation. Injunctive relief is shown as a legal tool aimed at stopping the further distribution of advertising contrary to the law. A civil penalty is calculated separately for each violation, and its upper limit is set at $3,000. These measures may be applied by the Attorney General and district attorneys.
