Bill Regulating Deceptive AI-Generated Real Estate Ads Clears Housing Committee

With artificial intelligence (AI) making it increasingly easy to manipulate photos and videos, the Assembly Housing Committee advanced legislation yesterday that would regulate the deceptive use of AI and heavily altered images in certain property listings. Assemblywomen Carmen Morales and Mitchelle Drulis and Assemblyman Al Abdelaziz sponsored Bill  A4728.

“Searching for a place to live is already stressful enough without people having to wonder if the listing they are looking at is even real,” said Assemblywoman Morales (D-Essex). “When people can hide serious problems and exaggerate conditions, we have a serious problem. We must do everything we can to protect our residents during one of the biggest financial decisions of their lives.”

Bill A4728 would prohibit landlords and property owners from using generative AI or photo editing software to deceptively alter listing images, with the exception of photos with staged furniture. A photo used for a listing must reflect the current state of the unit and not be older than five years. This includes photos used for properties that are for sale, rent or lease.

“As AI technology becomes increasingly sophisticated and more accessible, the potential for misleading advertising grows with it,” said Assemblywoman Drulis (D‑Hunterdon, Mercer, Somerset, Middlesex). “Home buyers and renters deserve transparency. There’s a significant difference between helping someone visualize furnished rooms versus digitally adding windows where none exist or covering up structural damage. These practices waste people’s valuable time and money.”

According to the National Association of Realtors, one in five realtors already use AI tools daily in their business operations.

“Technology can absolutely be a useful tool, but it should never come at the expense of honesty and transparency, or a family’s stability,” said Assemblyman Abdelaziz (D-Bergen, Passaic). “No one should have to walk into a showing only to discover the property looks nothing like what was advertised online, and this bill helps make sure families are making decisions based on reality, not something generated by a computer.”

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