New York introduces comprehensive measures to regulate AI-generated advertising and safeguard posthumous likeness rights, impacting brands and franchise systems statewide amid broader AI governance efforts.
New York has moved to tighten rules governing artificial intelligence in consumer-facing media and to extend protections over the commercial use of deceased persons’ likenesses, measures likely to affect national brands and franchise networks that advertise to or operate in the state. According to the governor’s office, the AI Transparency in Advertising Act requires clear notice when commercial advertising distributed in New York relies on AI-generated “synthetic performers”, with the statute taking effect on 9 June 2026 and civil penalties of $1,000 for a first breach and $5,000 for repeat violations. (Sources: governor’s office, legal briefings).
The new disclosure obligation reaches a wide set of market actors, from national advertisers and creative agencies to local franchisees and influencers producing regionally targeted posts. Industry advisories note the law covers digitally created humanlike figures made or substantially altered by software to appear as people performing in commercials, and that exemptions are limited, applying for example to audio-only messaging and certain expressive works. Businesses that centralise marketing or allow franchisees to localise brand creative will need to ensure disclosures are incorporated wherever an ad is likely to be seen by New York consumers. (Sources: legal analyses, firm advisories).
Franchise systems face particular operational questions: who must flag synthetic-performer use in contracts, how approval workflows will detect AI-generated assets, and which party bears indemnity if a disclosure is omitted. Practitioners recommend updating agency and vendor agreements to require advance notice of synthetic content, adding review steps to ad-approval processes, and clarifying liability allocation between franchisor and franchisee where localised creative is used. Industry counsel argue these steps are prudent ahead of the law’s effective date to avoid regulatory and brand risk. (Sources: law firm guidance, professional commentary).
Separately, New York expanded its right of publicity to address posthumous digital recreations. Effective immediately upon enactment, the Posthumous Right of Publicity Expansion Act demands prior authorisation from an heir, executor or assignee before a deceased person’s name, voice, image or AI-generated likeness can be used commercially. The amendment builds on earlier provisions dealing with digital replicas and aims to close gaps exposed by generative technologies that can synthesise performances or likenesses. (Sources: legal summaries, firm publications).
The practical consequences for brands and franchisors are concrete: licences that historically covered “all media” or legacy footage may not be sufficient for AI-based resurrections, de‑aging or derivative simulations. Advisers urge companies to conduct rights audits, negotiate explicit estate licences addressing AI reproduction, and amend franchise disclosure documents and system policies to assign responsibility for securing publicity rights and to prohibit unauthorised local use. Failure to do so could expose parties to statutory damages, awards of profits, and potential punitive relief. (Sources: legal analyses, firm notes).
Taken together, the statutes reflect a wider state effort to regulate AI beyond technical standards, treating certain commercial AI uses as consumer-protection and publicity issues. Alongside the disclosure and publicity statutes, New York has established oversight structures to study frontier models and their social and labour effects, signalling that the state intends ongoing engagement with AI governance. For franchisors and franchisees, the shift means treating some AI activities as regulated practices that require documented oversight, bespoke contract language and updated compliance programmes. (Sources: governor’s announcement, professional commentaries).
For businesses operating in multi-state systems, the new New York rules underline the need to harmonise national marketing strategies with state-level mandates: centralised creative may need state‑specific disclosures or regional controls, and local operators should be restricted from deploying AI-generated performers or deceased-person likenesses without documented approvals. Legal advisers suggest integrating synthetic‑performer checks into approval workflows, adding AI-specific clauses to FDDs and vendor contracts, and updating training and monitoring to preserve both compliance and consumer trust as AI becomes more embedded in advertising. (Sources: firm advisories, legal newsletters).
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emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article discusses the New York AI Transparency in Advertising Act, signed into law on December 11, 2025, with an effective date of June 9, 2026. ([cooley.com](https://www.cooley.com/news/insight/2026/2026-01-29-new-york-enacts-synthetic-performer-disclosure-law-for-advertisements-including-those-using-generative-ai?utm_source=openai)) The earliest known publication date of similar content is December 17, 2025. ([debevoise.com](https://www.debevoise.com/-/media/files/insights/publications/2025/12/new-york-enacts-landmark-ai-right-of-publicity-law.pdf?utm_source=openai)) The article appears to be original, with no evidence of recycling or republishing across low-quality sites. However, the content is based on a press release, which typically warrants a high freshness score. ([cooley.com](https://www.cooley.com/news/insight/2026/2026-01-29-new-york-enacts-synthetic-performer-disclosure-law-for-advertisements-including-those-using-generative-ai?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes direct quotes from the governor’s office and legal briefings. Searches for the earliest known usage of these quotes indicate they originate from the press release dated December 11, 2025. ([cooley.com](https://www.cooley.com/news/insight/2026/2026-01-29-new-york-enacts-synthetic-performer-disclosure-law-for-advertisements-including-those-using-generative-ai?utm_source=openai)) While the quotes are verifiable within the press release, they cannot be independently verified from other sources, raising concerns about their authenticity.
Source reliability
Score:
6
Notes:
The article cites a press release from the governor’s office and legal briefings. While these sources are authoritative, they are not independent, as they originate from entities with a vested interest in the narrative. This lack of independent verification reduces the overall reliability of the information presented.
Plausibility check
Score:
7
Notes:
The claims about the AI Transparency in Advertising Act align with known legislative actions in New York. ([cooley.com](https://www.cooley.com/news/insight/2026/2026-01-29-new-york-enacts-synthetic-performer-disclosure-law-for-advertisements-including-those-using-generative-ai?utm_source=openai)) However, the reliance on a single source without independent verification raises questions about the completeness and accuracy of the information.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information based on a press release from the governor’s office and legal briefings, which are not independent sources. ([cooley.com](https://www.cooley.com/news/insight/2026/2026-01-29-new-york-enacts-synthetic-performer-disclosure-law-for-advertisements-including-those-using-generative-ai?utm_source=openai)) The reliance on these sources without independent verification raises concerns about the accuracy and objectivity of the information. Additionally, the quotes included in the article cannot be independently verified from other sources, further diminishing the overall reliability of the content.
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