An Act providing for unfair methods of competition and for enforcement and penalties.

PRIOR PRINTER'S NOS. 871, 1690 PRINTER'S NO. 1808
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 806
Session of
2025
INTRODUCED BY PISCIOTTANO, PENNYCUICK, MILLER, KANE,
TARTAGLIONE, FONTANA, HAYWOOD, HUGHES, VOGEL, COSTA, SAVAL,
SANTARSIERO, GEBHARD, MALONE, BROOKS, BOSCOLA AND FARRY,
JUNE 3, 2025
AS AMENDED ON THIRD CONSIDERATION, JUNE 10, 2026
AN ACT
Providing for unfair methods of competition and for enforcement
and penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Artificial
Intelligence Deceptive Advertising Act.
Section 2. Scope of act.
This act relates to deceptive advertising.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Artificial intelligence" or "AI."
(1) A machine-based system that can, for a given set of
human-defined objectives, make predictions, recommendations
or decisions influencing real or virtual environments,
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including the ability to:
(i) perceive real and virtual environments;
(ii) abstract perceptions made under subparagraph
(i) into models through analysis in an automated manner;
and
(iii) use model inference to formulate options for
information or action based on outcomes under
subparagraphs (i) and (ii).
(2) The term includes generative artificial
intelligence.
"Clear and conspicuous." A statement or disclosure that
meets all of the following criteria:
(1) The statement or disclosure is disclosed in a size,
color, contrast, location, duration and audibility that is
readily noticeable, readable, understandable and capable of
being heard. All statements and disclosures shall be
presented in the language or other interaction used by the
consumer to interact with or comprehend the synthetic
content.
(2) The statement or disclosure does not contradict and
is not inconsistent with any other information with which the
statement or disclosure is presented.
(3) If the statement or disclosure modifies, explains or
clarifies other information with which the statement or
disclosure is presented:
(i) the statement or disclosure is presented in
proximity to the information that the statement or
disclosure modifies in a manner that is likely to be
noticed, readable and understandable; and
(ii) the statement or disclosure is not to be
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obscured in any manner.
(4) If the statement or disclosure is an audio statement
or disclosure, the statement or disclosure is delivered in a
volume and cadence sufficient for a consumer to hear and
comprehend the statement or disclosure.
(5) If the statement or disclosure is a visual statement
or disclosure, the statement or disclosure is of a size and
shade and appears on the screen for a duration sufficient for
a consumer to read and comprehend the statement or
disclosure.
(6) If the statement or disclosure is a print
advertisement or promotional material, including a point-of-
sale display or brochure materials directed to a consumer,
the statement or disclosure is in a type size and location
sufficiently noticeable for a consumer to read and comprehend
the statement or disclosure in a print that contrasts with
the background against which the statement or disclosure
appears.
"Generative artificial intelligence." The class of models
that emulate the structure and characteristics of input data in
order to generate synthetic content.
"Synthetic content." Information, including an image, video,
audio clip or text, that has been significantly modified or
generated by artificial intelligence.
Section 4. Clear and conspicuous disclosure.
(a) Disclosure.--An advertiser may not knowingly, recklessly
or willfully create and disseminate or cause to be created and
disseminated an advertisement that uses synthetic content in a
manner that creates a false consumer perception about the
nature, origin or authenticity of the goods or services being
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advertised, without clear and conspicuous disclosure. A
disclosure under this section must state that the advertisement
contains content that was modified or generated using artificial
intelligence. This disclosure must be:
(1) Displayed in the first instance whenever the
synthetic content is presented to the consumer.
(2) Presented in the same medium as the synthetic
content.
(3) To the extent technically feasible, permanent or
extraordinarily difficult to remove from the synthetic
content.
(b) Exceptions.--Subsection (a) shall not include content
that is:
(1) evidently fictional based on the content or context
of the depiction;
(2) parody, satire, commentary or criticism; or
(3) limited to text.
(c) Construction.--Disclosure of the use of AI under
subsection (a) shall not be construed to limit any recourse
under law.
Section 5. Enforcement.
(a) Restraining prohibited acts.--Whenever the Attorney
General or the appropriate district attorney has reason to
believe that any person is using or is about to use any method,
act or practice declared by section 4 to be unlawful, and that
proceedings would be in the public interest, the Attorney
General or a district attorney may bring an action in the name
of the Commonwealth against the person to restrain by temporary
or permanent injunction the use of the method, act or practice.
(b) Civil penalty.--The Attorney General or the appropriate
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district attorney may bring a civil action for violations of
this act.
(c) Damages.--A court of competent jurisdiction may award
damages for a violation of this act. The court may award:
(1) A civil fine that does not exceed $3,000.
(2) Actual attorney fees and court costs.
Section 6. Effective date.
This act shall take effect in 60 days.
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