ADVISORY
Active guidance
New York State
New York Department of State
New York's Department of State has issued a public warning about AI-generated and digitally altered real estate listing photos — the first time a state regulator has directly addressed this issue. While not yet a specific statute, the guidance signals that misleading photos may violate existing advertising rules and lead to discipline, including monetary penalties.
Overview
New York's Department of State (DOS) released a public alert emphasizing that real estate listing images must be accurate and honest. The advisory marks the first time a state regulator has directly addressed AI-generated and digitally altered listing photos.
Under existing advertising regulations (§ 175.25), real estate brokers must ensure advertisements are truthful and not deceptive. The DOS has warned that misleading photos — including those enhanced by AI — may violate these rules and lead to disciplinary action.
While the DOS has not yet defined specific criteria for what constitutes acceptable editing, the direction is clear: transparency in listing photos is becoming an enforcement priority.
Quick Facts
Applies to
NY Licensed RE Professionals
Coverage
New York State
Type
Advisory / Regulatory Guidance
Legal basis
§ 175.25 Advertising Regs
Risk
Discipline + monetary penalties
Enforcement
NY Department of State
Areas of Concern
Based on the DOS advisory, these alterations are likely to raise compliance concerns:
Virtual staging that adds furniture, décor, or amenities not present
AI-generated images used in lieu of actual property photos
Sky replacement or environmental enhancements
Removal of permanent features or structural elements
Any alteration that could mislead consumers about property condition
View enhancements that don't reflect actual sightlines
Recommended Best Practices
While specific rules are still evolving, these practices align with the DOS advisory:
Clearly label any digitally altered or AI-enhanced photos
Include unaltered reference photos alongside edited versions
Disclose the nature and extent of digital modifications
Ensure advertisements are truthful and not deceptive
Obtain written authorization from property owners before advertising
Maintain records of original, unedited photos
Likely Exempt
Standard processing that doesn't materially alter the property:
Color correction and white balance
Exposure and brightness adjustments
Cropping and straightening
Lens distortion correction
Sharpening and clarity
Standard HDR processing
How to Prepare
Stay ahead of evolving New York requirements with these proactive steps.
1
Audit Your Photos
Review all listing photos for digital alterations that go beyond standard processing — especially AI-generated or virtually staged images.
2
Label Altered Images
Clearly identify any digitally altered photos to ensure advertisements are truthful under NY advertising regulations (§ 175.25).
3
Provide Originals
Include unaltered reference photos so buyers can compare the actual property appearance with edited versions.
4
Document Everything
Keep records of original photos, editing processes, and disclosure efforts in case of inquiry from the Department of State.
Get Ahead of the Curve
Even though New York's guidance hasn't yet become a specific statute, the direction is clear. PropMedia's disclosure tool helps you demonstrate transparency now — so you're already compliant when formal rules arrive.
Create Compliant Disclosure
Compliance Risks & Consequences
The DOS advisory warns that misleading listing photos may trigger enforcement under existing New York real estate advertising regulations.
Advertising violations
Under § 175.25, real estate advertisements must be truthful. The DOS has signaled that digitally altered photos that mislead consumers could constitute deceptive advertising, triggering investigation and discipline.
Monetary penalties
The Department of State can impose monetary penalties on licensees who violate advertising regulations. The specific amount depends on the severity and pattern of violations.
License discipline
Serious or repeated violations can lead to license suspension, revocation, or denial of renewal. The DOS treats misleading advertising as a matter of consumer protection.
Consumer trust erosion
The DOS cites research showing consumers actively avoid services advertised with AI-generated images, particularly for high-involvement decisions like homebuying. Transparent disclosure builds rather than erodes trust.
Official Source
Read the New York Department of State's real estate advertising regulations and guidance.
View DOS Guidance
Last updated: February 2026
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