Pennsylvania Signs Law on Labeling AI in Ads, but Rules Are Vague

Pennsylvania has a new law about labeling AI in advertising, and the biggest question is what it actually requires. Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act (SB 806). It takes effect December 21, 2026, which is 60 days after signing. Lawyers at Loeb & Loeb say the wording leaves businesses guessing.

What the law says

An advertiser must disclose AI use when AI-made content creates a false consumer perception about the nature, origin or authenticity of what is being advertised. The law covers images, video and audio that were significantly modified or generated by AI. It does not cover text-only content. Evidently fictional content, parody, satire, commentary and criticism are also exempt.

Why it is vague

The word "false" is not defined. It could mean any AI-made picture of a product needs a label. Or it could mean only ads where AI makes the product look like something it is not. One senator asked "false as compared to what," and the language was not changed.

The bill's lead sponsor spoke broadly, saying Pennsylvanians deserve to know whether an ad was created by a person or by AI. The text itself is narrower. Enforcers may side with the broader view.

What a label looks like

• It must say the ad "contains content that was modified or generated using artificial intelligence."
• It must be clear and conspicuous, and appear the first time the content is shown.
• It must be in the same medium as the content.
• Where technically feasible, it must be permanent or extraordinarily difficult to remove.

Penalties and who enforces

Only the attorney general and district attorneys can enforce the law. A court may impose a fine of up to $3,000, plus attorney fees and costs. Private citizens cannot sue under it. A label is not a shield, either. The law keeps other legal remedies, so a misleading ad can still get an advertiser in trouble with or without a label. The legislature also removed wording that would have limited the law to advertisers acting knowingly, recklessly or willfully.

What to do

Businesses advertising in Pennsylvania should review AI-made or AI-altered images, video and audio before December 21. Because the trigger is uncertain, the lawyers expect many advertisers to add a label rather than try to guess. No guidance or enforcement actions exist yet. Pennsylvania joins New York and California with a different approach, and more states are likely to follow.