BILL NUMBER: S9584
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the general business law and the real property law, in
relation to digital representations in real estate listings
 
PURPOSE:
To ensure that images, videos, and virtual tours used in real estate
listings accurately reflect the properties they depict, and to protect
consumers from misleading or deceptive digital representations.
 
SUMMARY OF PROVISIONS:
This bill clarifies that the use of digitally altered or AI-generated
images, videos, or virtual tours in real estate listings may constitute
deceptive, unfair, or abusive acts under existing consumer protection
law when they materially misrepresent a property or interfere with a
reasonable buyer's understanding of it. It defines digital representa-
tions to include both static images and immersive media such as virtual
tours, and establishes that listings may not misstate a property's
condition, features, or layout. The bill requires clear disclosure when
images or tours have been materially altered or virtually staged, and
prohibits the addition of non-existent features or the concealment of
known defects without disclosure. It also sets a baseline accuracy stan-
dard for virtual tours, which must reflect the real spatial character-
istics of a property, and requires that conceptual or AI-generated
representations be clearly labeled.
 
JUSTIFICATION:
Buying or renting a home is one of the most significant decisions most
New Yorkers will make. For many, the search begins online, where list-
ings are expected to provide a reliable picture of what a property actu-
ally looks like. Increasingly, that expectation is not being met.
Advances in artificial intelligence and digital editing tools have made
it easy to enhance listing photos in ways that go well beyond tradi-
tional staging. Images can now remove signs of damage, add features that
do not exist, or make rooms appear larger and brighter than they are.
Virtual tours can be reconstructed or generated to suggest layouts and
spaces that are materially different from reality. A prospective buyer
may take time off work, travel to a showing, and arrange financing based
on what appears to be an accurate listing, only to arrive and find some-
thing entirely different.
This gap between representation and reality is more than an inconven-
ience. It wastes time and money, distorts pricing and market expecta-
tions, and erodes trust in the real estate market. It also creates an
uneven playing field, where those who use increasingly aggressive
digital manipulation gain an advantage over those who present properties
honestly.
New York law already requires that advertising be truthful and not
misleading, and the Department of State has recently warned that AI-gen-
erated or heavily altered listing images may violate these standards.
However, the rapid development of these tools has created uncertainty
about how existing law applies, particularly with respect to virtual
tours and imrnersive media that purport to show the layout and spatial
relationships of a property.
This bill provides clarity. It allows reasonable enhancements, such as
basic lighting adjustments or virtual staging that does not mislead.
Instead, it draws a clear line: digital representations may not mate-
rially misrepresent a property or interfere with a reasonable consumer's
understanding of it. By explicitly addressing images and virtual tours,
and by requiring clear disclosure where alterations are used, the bill
ensures that consumers can rely on listings as meaningful previews rath-
er than marketing fiction. In short, this legislation ensures that as
technology evolves, the basic expectation of honesty in real estate
listings remains intact.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.