Report from MediaPost
In Brief – California Governor Gavin Newsom (D) has signed SB 1050 into law requiring advertisements featuring “synthetic” performers to disclose when the digital figures were generated by AI. The measure, which was strongly backed by the Screen Actors Guild-American Federation of Television and Radio Artists, defines synthetic performers as AI-generated digital figures or voices that appear human but do not depict a particular person and the law requires disclosure when the performer is demonstrating a product or service, narrating an ad, or reacting to narration. Ads for movies, television programs, video games and similar entertainment are largely exempt when the digital figures are consistent with those in the featured content. The law also requires publishers to remove ads that a court has found to violate the disclosure law, a requirement that appears likely to conflict with federal statute Sec. 230 that generally shields online services from liability for third-party content. Major advertising industry groups opposed the measure, arguing that it imposes an overly broad labeling requirement, burdens ordinary commercial speech and mandates disclosures even when consumers are unlikely to be deceived.
Context – AI “transparency” rules are part of the EU’s AI Act regulatory regime. The requirements include that companies clearly disclose when users are interacting with AI services and chatbots, or viewing AI-generated or manipulated images, audio and video. The AI services must also label AI images, including adding machine-readable markers to facilitate detection. The European Commission has issued guidance explaining compliance obligations and how adherence to the voluntary code of practice on transparency can help demonstrate conformity. In the US, mandatory labeling laws generally face First Amendment challenges with mixed results. Election deepfake laws in California and Montana have been blocked while laws on both election deepfakes and sexual deepfakes in Minnesota have withstood initial court challenges. However, although more than 25 states have enacted laws against election deepfakes, none have been enforced.