New York's AI Disclosure Law Is Live: What It Means for AI-Generated Product Videos

As of June 9, 2026, New York requires businesses to disclose when an advertisement uses an AI-generated "synthetic performer." It's the first US state law specifically targeting AI-generated human likenesses in advertising, and it lands at the same time the FTC has been ramping up enforcement against undisclosed AI content more broadly. If your Shopify store uses AI avatars in product videos, this is worth five minutes of your attention, not because the law is complicated, but because the penalties apply per violation, and "we didn't know" isn't a defense that's held up so far.

What New York's Law Actually Requires

Under New York's Synthetic Performer Disclosure Law, any advertisement reaching a New York audience that uses a digitally created media performer, generated by AI or algorithm, appearing as a genuine but non-identifiable person, must include a conspicuous disclosure that a synthetic performer was used. The law applies regardless of where the advertiser is based; what matters is whether the ad could reach New York consumers, which for most e-commerce advertising means it applies to you by default.

Penalties start at $5,000 for a first violation and $10,000 for each subsequent one. At the federal level, the FTC's general deception authority already treats an AI-generated testimonial presented as a real customer as illegal, with penalties reaching $53,088 per violation, and each day a non-compliant ad keeps running can count as a separate violation. The FTC issued warnings to ten companies in December 2025 specifically about this, so enforcement isn't theoretical.

The Distinction That Actually Matters: Assisted vs. Generated

Not every use of AI in a product video triggers disclosure. The line, as marketing law guides have converged on describing it, comes down to whether the endorser itself is synthetic. If you filmed real footage, wrote your own script, and used AI for editing, captions, or color grading, that's AI-assisted production, and it doesn't trigger the synthetic performer disclosure. If an AI avatar is the one speaking, presenting, or standing in for a customer, that's AI-generated endorsement territory, and disclosure applies.

This matters directly for how ReelTok's AI Studio content should be labeled. A product video with an AI avatar presenter or an AI-generated product demo falls on the "generated" side of that line if it's positioned as though a real person is showing off the product. The same content, framed clearly as a brand-produced demo rather than a customer testimonial, generally sits in safer territory, but the disclosure requirement is specifically about synthetic performers, so avatar-presented product videos are the category to be most careful with.

What Compliant Disclosure Actually Looks Like

Vague language doesn't satisfy the requirement. Marketing law guidance is consistent on this: a disclosure needs to be clear, conspicuous, and specific about the AI nature of the content, not buried in fine print or a terms-of-service link. For video specifically, that means:

• Text overlay stating something direct, such as "AI-generated presenter" or "This video features an AI avatar," visible for a meaningful portion of the video, not a flash in the corner
• The disclosure stated in both the audio and on-screen text where the format allows it
• Placement near the beginning of the video, not only at the end after a shopper may have already formed an impression

A small, fleeting disclaimer that's technically present but practically invisible is treated by regulators the same as no disclosure at all. If your product video features an AI avatar, the disclosure should be as easy to notice as the product being sold.

What's Not Affected

Real customer UGC, whether imported from TikTok and Instagram or collected directly, isn't touched by this law. Neither is AI-assisted editing of genuine footage. And product b-roll or staging content that doesn't feature a presenter, an animated product-only demo, for instance, generally falls outside "synthetic performer" territory since there's no performer to disclose. The disclosure requirement is specifically about AI standing in for a person, not about AI touching a video at any point in its production.

The Practical Move

If any part of your video content uses an AI avatar to present or demonstrate a product, add a clear, visible disclosure now rather than waiting for an enforcement action to force the issue. This isn't a reason to abandon AI avatar content, which remains a fast, effective way to get video onto product pages that don't have customer footage yet. It's a reason to label it honestly, which, if anything, tends to build more trust with shoppers than an ambiguous testimonial that looks real but isn't.

ReelTok's AI Studio generates avatar presentations, product showcases, b-roll, and staged demos, and the honest path is straightforward: use avatar content for what it's good at, fast, scalable product demonstration, disclose it clearly when it's presenting rather than just editing, and reserve unlabeled testimonial-style placement for actual customers. Compliance and conversion aren't in tension here. A shopper who knows they're watching an AI-generated demo isn't less likely to buy; they're just not being misled about who's talking. Try ReelTok free and build both real and AI-generated video into your store the right way.