Retailers Face New Legal Risks as AI-Generated Ads Expand
Retailers are deploying AI-generated advertising at scale—synthetic images, copy, and video in consumer campaigns—just as regulators tighten compliance rules around copyright, trademark, publicity, and privacy. The core exposure is straightforward: AI-created ad creatives can inadvertently mirror copyrighted works, replicate protected brand elements, or depict realistic human likenesses without proper permissions or releases. The Federal Trade Commission is actively enforcing against deceptive AI advertising claims and inadequate disclosures. New York's 2025 synthetic-performer disclosure law, effective June 9, 2026, requires conspicuous notice whenever AI-generated human likenesses appear in visual or audiovisual ads shown to New York audiences.