Amazon Requires Sellers to Label AI-Generated People Images Following New York Law

As CNBC Top News reports (https://www.cnbc.com/2026/07/23/amazon-makes-sellers-label-ai-generated-people-in-images-after-ny-law.html), Amazon has tightened its policies for sellers and now requires clear labeling of images that show AI-generated people. This measure follows a recently passed law in New York that obliges companies to disclose in advertisements when "synthetic performers" are used instead of real people.

Background of the Law

The new law in New York responds to the increasing prevalence of AI-generated images and videos in advertising. It aims to prevent consumers from being misled by deceptively realistic but artificially created representations. Especially for product images featuring people, it is intended to ensure that customers know whether the models are real or computer-generated figures.

Implementation at Amazon

Amazon has announced that sellers using AI-generated images of people must in the future include a clear notice. This applies to both product photos and promotional materials on the platform. The labeling must be directly visible to ensure transparency and strengthen buyer trust. Sellers who violate this requirement face sanctions ranging from removal of listings to suspension of their seller accounts. Amazon emphasizes that this measure is part of a broader commitment to the responsible use of AI technologies and consumer protection.

Significance for Online Commerce

The introduction of this regulation marks an important step in dealing with AI-generated content in e-commerce. While AI-supported image generation increases creativity and efficiency in marketing, it also carries risks regarding transparency and consumer deception. Mandatory labeling creates a clear framework that protects consumer rights and promotes fair competition among sellers. Other platforms and states may follow this example, further advancing the regulation of AI in advertising.

Outlook

The development shows how legislators and companies are responding to the challenges posed by new technologies. Amazon positions itself as a pioneer in the responsible handling of AI in commerce. For sellers, this means adapting their marketing strategies to meet the new transparency requirements. In the long term, clear labeling of AI-generated content could strengthen consumer trust in online platforms and promote acceptance of AI technologies in marketing without the risk of deception.