Bill requires disclosure of AI in commercials

House approves measure that now heads to governor

Advertisers will be required to disclose if artificial intelligence is used in commercials under legislation heading to Gov. Josh Shapiro.

The state House approved Senate Bill 806 by a 163-40 vote on Wednesday, two days after it cleared the House Communications and Technology Committee. The Senate approved the bill in June in a 48-2 vote. The House approved the measure without changes, so the bill will become law if Shapiro signs it.

Pennsylvania would become the third state with a law requiring advertisers to disclose when AI-crafted material is used in commercials. New York's AI notice requirement went into effect in June. A similar mandate takes effect in California in January 2027.

The Pennsylvania notification requirement will take effect 60 days after Shapiro signs the bill, which he is expected to do, said state Sen. Nick Pisciottano, D-Allegheny, the prime sponsor of SB 806.

"This is a major step for consumer protection in Pennsylvania," Pisciottano said. "Consumers deserve to know if AI is being used to create a false impression about a product or service. This legislation sets a commonsense transparency standard so Pennsylvanians can make informed decisions about what they are buying, while still allowing businesses to take advantage of this technology."

Pisciottano said the legislation is needed because as AI becomes more sophisticated it is becoming more difficult for people to discern if the content is authentic or AI-generated.

"Highly realistic images, videos, and audio can distort how consumers see products and services.

Senate Bill 806 cracks down on AI-driven scams and assists consumers in spotting fake content," he said in a statement. These protections will slow the spread of misinformation and protect consumers by giving the average person the ability to identify whether content is authentic or AI-generated.​‌

The attorney general and county prosecutors are empowered to bring actions against any advertiser violating the disclosure requirement. Civil penalties are capped at $3,000, plus attorney fees and court costs.

The measure is one of several bills aimed at regulating the use of AI moving in the General Assembly but with only a handful of session days remaining, it is uncertain how many of the other bills might clear both chambers. The House and Senate are both scheduled to hold three voting days before the election. Both chambers have also scheduled two days after the election but it is uncommon for lawmakers to vote on legislation of any substance on lame-duck session days.

Moratorium on AI in toys

The House Communications and Technology Committee unanimously approved legislation Wednesday that would enact a three-year moratorium on the use of interactive AI technology in toys.

However, at a hearing on the legislation held Sept. 28, a toy industry lobbyist said that the moratorium in House Bill 2367 goes too far and urged lawmakers to instead move Senate Bill 1090, which was approved by the Senate in a 49-1 vote in March.

"A multi-year ban is not needed," Charlotte Hickcox, state affairs director for The Toy Association, said at the hearing. Such a ban would sweep up toys that don't pose a risk, she added.

SB 1090 would mandate that AI companion apps implement protections to ensure AI does not encourage a user to commit self-harm and requiring that the technology direct the user to crisis services if he or she expresses an interest in committing suicide. AI companions are designed to engage users with human-like interactions, but critics say the technology can harm adolescent social development by discouraging young people from interacting with real people.

The legislation also includes special rules for companion apps being used by children, including disclosures that AI is being used in the toy and requiring that the toy provide a notice to take a break from interacting with it every three hours. The legislation would also require that toy companies include protections to ensure that AI does not generate sexual material or encourage minors to engage in sexual conduct.

SB 1090 has not moved out of the House Communications and Technology Committee.