Amazon mandates sellers label AI-generated people in product images following New York law

Amazon cracks down on use of AI images by sellers after New York law

Amazon is requiring that third-party sellers label any product images or videos that contain "AI-generated people" after New York recently passed a law mandating greater transparency around "synthetic performers" in ads. The company informed sellers Wednesday of the policy change, according to a copy of the announcement viewed by CNBC. The policy directs sellers to tag images and any "A+ content," which refers to videos or other graphics on listing pages, with specific metadata keywords before they're uploaded. "Recent legislation requires disclosure when images or videos in advertisements contain photorealistic AI-generated people," Amazon wrote in the announcement. The New York law, which took effect last month, requires companies to disclose if "synthetic performers" are used in place of human actors in advertising. The legislation applies to "digitally-created media that appear as a real person." Governor Kathy Hochul described it as a "first-in-the-nation" law. "Without notice that the content the public is viewing is not real, AI-generated synthetic performers and manipulated media can undermine one's ability to accurately distill fact from fiction," Hochul's office said in a release. Amazon clarified in its announcement that the requirement doesn't apply to content featuring TV, video game and movie characters, or content that includes real people, even if they've been altered using AI. The company said it will "add an indicator" to listings on its website, informing consumers that images or other content feature AI-generated people, "where applicable." It's unclear what criteria Amazon will apply when deciding when to display the label to shoppers. Amazon didn't immediately provide a comment. Amazon has embraced AI internally and it's increasingly infusing the technology across its portfolio. The company has optimized listing titles and details so they're more likely to be spotted by AI systems, invested in a recently rebranded assistant called Alexa for Shopping, and launched a feature that injects AI-generated products into its search bar in real time based on user queries. More Amazon third-party sellers are using AI to generate text, images and other content for their listings, partly by using the company's tools. Outside sellers are the engine behind Amazon's core retail business, accounting for more than 60% of goods sold on its marketplace. There is no federal law requiring companies to disclose when advertising content has been created using AI. States have taken steps to require greater transparency around AI content. Earlier this year, California began requiring large AI providers to embed watermarks in AI-generated images, video or other content. Meta, TikTok, Pinterest and Google's YouTube have added AI-generated content labels to videos and images uploaded to their platforms. TikTok and Meta have recently been criticized for not adequately labeling ads that feature AI-generated influencers hawking dubious products, in some cases without a brand's knowledge. TikTok has said it's taken steps to ban accounts that make misleading health claims, and Meta said it labels AI videos

Amazon requiring sellers to label AI-generated people in product images

The policy follows a New York law that took effect last month requiring disclosure of "synthetic performers" in advertising Amazon $AMZN told third-party sellers this week that they must tag product images and videos containing photorealistic AI-generated people with specific metadata before uploading them to its marketplace, following a New York state law requiring greater transparency around AI-generated figures in advertising. Amazon notified its seller community Wednesday of the new requirement, CNBC reported. Under the policy, sellers must apply specific metadata tags to product images and to "A+ content" -- the videos and enhanced graphics that populate listing pages -- prior to uploading them. Amazon's announcement stated that recent legislation obligates disclosure whenever advertisements feature photorealistic AI-generated people. Enacted last month, the New York law mandates that companies reveal when "synthetic performers" stand in for human actors in ads; it defines that term to cover digitally created media that are indistinguishable from real people. Governor Kathy Hochul called it a "first-in-the-nation" law. Her office added in a statement: "Without notice that the content the public is viewing is not real, AI-generated synthetic performers and manipulated media can undermine one's ability to accurately distill fact from fiction." Amazon plans to attach a visible marker to qualifying listings so consumers know when AI-generated people appear in the content, though it left unanswered the question of exactly when the marker will be triggered. The new rule carves out exceptions for content depicting TV, video game, or movie characters, and it does not cover real people whose likenesses have been modified with AI tools, the company said. Third-party sellers drive a large share of Amazon's retail volume, responsible for more than 60% of units sold on the platform, CNBC reported. A growing number of those sellers are turning to AI -- including tools that Amazon itself offers -- to produce listing copy, images, and other promotional material. Other platforms have moved to label AI-generated content as well. YouTube announced in May that it would automatically apply AI labels to videos when its systems detect significant photorealistic AI use, adding an enforcement layer on top of existing creator disclosure requirements. Meta $META, TikTok, Pinterest $PINS, and YouTube have all introduced some form of AI-content labeling on their platforms, though both TikTok and Meta have drawn scrutiny over their handling of ads that use AI-generated influencers to promote questionable products. There is no federal law requiring companies to disclose when advertising content has been created using AI. California also moved this year to mandate that major AI developers encode watermarks into any images or video their systems produce.