A new law in California aims to prevent homebuyers from being misled by digitally altered property listing photos. Assembly Bill 723, which took effect on January 1, requires real estate agents and brokers to disclose when images have been edited and to provide the original, unedited photos for comparison. Governor Gavin Newsom signed the bill into law in October.
The regulation applies to a wide range of marketing materials, including online listings, brochures, and other promotional content. It also covers not just brokerages but extends to photography firms and Multiple Listing Services that supply data to platforms such as Zillow and Redfin. The law mandates disclosure for any changes that add, remove or modify elements like fixtures, furniture, appliances, flooring, paint color, landscaping features visible from the property—including streetlights or neighboring homes.
Rep. Gail Pellerin of Santa Cruz authored the bill after hearing about her former chief of staff’s experience: “She drove an hour to a home she was looking to buy only to find that the kitchen featured in the listing photo did not exist,” with only a range hood present instead of cabinets or appliances. The legislation is part of broader efforts by state lawmakers to address issues related to artificial intelligence in real estate marketing. A similar measure was passed recently in Wisconsin.
Jeff Klein, managing director of Open Homes Photography, told the San Francisco Chronicle: “AI has made the barrier to entry very low.” He noted that generative AI can sometimes create misleading images—such as views from rooms that do not actually exist—through virtual staging techniques.
While Assembly Bill 723 does not set specific penalties for failing to disclose alterations, Rep. Pellerin explained: “It would fall on the [California] Department of Real Estate to address any violation per their disciplinary process.” Stephen Lerner, assistant commissioner for legal affairs at the department said: “Depending on the egregiousness, we could take corrective action, ranging from revoking a license to a slap on the wrist.”
