Executive Summary
- What’s new: California has enacted a new law making it unlawful to create and publish an advertisement that prominently includes an AI-generated “synthetic performer” without a clear and conspicuous disclosure. New York enacted a similar law late last year.
- Why it matters: The California and New York laws are intended to protect the public from being misled by AI-generated advertising. However, a clear subtext to these laws is to dissuade advertisers from using AI-generated performers. The laws are also examples of how states are stepping into the void created by the dearth of any federal AI legislation.
- What to do next: Advertisers and platforms in California should consider putting in place procedures to ensure that advertising that prominently uses AI-generated digital figures, voices or representations includes clear and conspicuous disclosures that AI was used.
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Background
Generative AI now makes it possible to produce lifelike “performers” — faces, bodies and voices that look and sound human but depict no real person. The California Legislature found that consumers have a substantial interest in knowing when an advertisement uses a synthetic performer in a manner that could reasonably be interpreted as a human performance, and that requiring a factual disclosure is necessary to prevent deceptive or misleading advertising.
What SB 1050 Requires
The California legislation, SB 1050, which will go into effect January 1, 2027, makes it unlawful for any person to create and cause to be published in any advertising medium an advertisement that prominently includes a synthetic performer without a clear and conspicuous disclosure that the advertisement includes a synthetic performer. The disclosure must use wording substantially similar to “this performance features a synthetic performer” or “no human performer is depicted.” New York enacted a similar law late last year.
The law also imposes obligations on advertising media, such cable operators. If a court issues an order finding that an advertisement violates the California law, the applicable advertising medium must remove the violating advertisement and cease further dissemination as soon as commercially reasonable and technically feasible.
Key Definitions
SB 1050 defines the terms that determine the law’s reach:
- “Synthetic performer”: A digital figure, voice or representation created in whole or in part using generative artificial intelligence that creates the realistic impression of the audio, audiovisual or visual performance of a human performer who is not recognizable as any identifiable natural person.
- “Prominently”: The synthetic performer is (A) in the foreground and demonstrating or illustrating the product or service; (B) providing or voicing the on- or off-camera narration or commercial message; or (C) illustrating or reacting to the on- or off-camera narration or commercial message.
- “Clear and conspicuous disclosure”: A disclosure that is difficult to miss, easily understandable and presented in a manner that a reasonable consumer would notice, read and comprehend, taking into account the medium, format and context.
- “Advertising medium”: Any broadcast station, cable operator, multichannel video programming distributor, online platform, streaming service, digital advertising network, publisher or other entity that distributes, displays, transmits or makes available an audio or audiovisual advertisement to consumers in California. The term excludes an entity not capable of removing, disabling access to or ceasing dissemination of an advertisement.
Exceptions
SB 1050 does not apply to advertisements for expressive works (e.g., motion pictures, television programs, streaming content, documentaries, video games or similar works), provided the use of the synthetic performer in the advertisement is consistent with its use in the expressive work; or where the use of generative AI solely involves language translation of a human performer or other accessibility features.
Enforcement
A violation of SB 1050 constitutes a violation of California’s false advertising statute and may be enforced under California’s Unfair Competition Law, meaning private rights of action are possible. The statute does not set its own penalty amount; instead, it imports the remedies available under those existing laws.
Differences With New York’s Synthetic Performer Law
New York’s synthetic performer law went into effect in June 2026, and while it covers the same general concepts as SB 1050, there are important differences that advertisers should note for multistate campaigns that would cover California and New York. Specifically, the California law only applies when the synthetic performer is used “prominently” while the New York law applies when any synthetic performer is used in the advertisement. The California law includes AI-generated voices while New York’s does not, and California provides suggested wording for a disclosure that would satisfy the state’s law while New York does not. In addition, in contrast to New York, California imposes obligations directly on advertising media to remove noncompliant advertisements after a court order, and also allows for a private right of action.
Practical Implications
- Build disclosure into creative workflows. Advertisers using AI-generated talent or voices should consider integrating disclosure review into creative production and legal signoff, especially for California-facing campaigns, and assessing multistate exposure given New York’s parallel but not identical requirements. A single disclosure approach that satisfies the stricter elements of each — for example, using California's safe-harbor wording in all markets, including audio — may be the most efficient path.
- Prepare platform order-intake procedures. Platforms, streaming services, publishers and ad networks should consider establishing procedures to receive, validate and act on court orders; remove or disable an advertisement in California; and stop accepting payment for further dissemination.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.