New California Law Requires Real Estate Agents and
Brokers to Disclose AI Alterations in Listings
Artificial intelligence and digital marketing have become
ubiquitous in real estate advertising. The widespread use of AI
creates risk for consumers who don't know whether images
shown online or on the multiple listing services are real. A new
California law that goes into effect in January 2026 tries to draw
a clear line: innovation is welcome but deception is not.
The state's new law requires licensed real estate brokers
and salespersons to disclose when images used in advertisement and
promotional materials have been digitally altered and to provide
access to the original, unaltered images. The law is intended to
enhance transparency in real estate advertising and to reduce the
risk of consumer deception arising from image editing, virtual
staging, or other digital modifications.