SB 806 — An Act providing for unfair methods of competition and for enforcement and penalties.

PRIOR PRINTER'S NO.

871 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1690806 THE2025 GENERALINTRODUCED ASSEMBLYBY OFPISCIOTTANO, PENNSYLVANIAPENNYCUICK, SENATEMILLER, BILLKANE, SessionTARTAGLIONE, FONTANA, HAYWOOD, HUGHES, VOGEL, COSTA, SAVAL, SANTARSIERO AND GEBHARD, JUNE 3, 2025 REFERRED TO COMMUNICATIONS AND TECHNOLOGY, JUNE 3, 2025 AN ACT Amending the act of No.December 17, 1968 (P.L.1224, No.387), entitled "An act prohibiting unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce, giving the Attorney General and penalties," further providing for definitions.nd providing The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

806 2025 INTRODUCED BY PISCIOTTANO, PENNYCUICK, MILLER, KANE, SANTARSIERO, GEBHARD, MALONE, BROOKS AND BOSCOLA,TA, SAVAL, JUNE 3, 2025 SENMAY 6, 2026UICK, COMMUNICATIONS AND TECHNOLOGY, AS AMENDED, AN ACT Amending the act of December 17, 1968 (P.L.1224, No.387), <-- entitled "An act prohibiting unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce, giving the Attorney General and District Attorneys certain powers and duties and providing penalties," further providing for definitions.

PROAND PENALTIES.AIR METHODS OF COMPETITION AND FOR ENFORCEMENT <-- The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 2(4) of the act of December 17, 1968 <-- (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, is amended by adding a subclause and the section is amended by adding clauses to read:

and 20250SB0806PN1690 - 2 - (B) the statement or disclosure is not to be obscured in any manner.

20250SB0806PN0871 - 2 - (iv) If the statement or disclosure is an audio statement or disclosure, the statement or disclosure is delivered in a volume and cadence sufficient for a consumer to hear and comprehend the statement or disclosure.

SECTION20250SB0806PN0871 1.- 3 -

SHORT TITLE.

<-- THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE ARTIFICIAL INTELLIGENCE DECEPTIVE ADVERTISING ACT.

SECTION 2.

SCOPE OF ACT.

THIS ACT RELATES TO DECEPTIVE ADVERTISING.

SECTION 3.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"ARTIFICIAL INTELLIGENCE" OR "AI." (1) A MACHINE-BASED SYSTEM THAT CAN, FOR A GIVEN SET OF HUMAN-DEFINED OBJECTIVES, MAKE PREDICTIONS, RECOMMENDATIONS 20250SB0806PN1690 - 3 - OR DECISIONS INFLUENCING REAL OR VIRTUAL ENVIRONMENTS, INCLUDING THE ABILITY TO:

(I) PERCEIVE REAL AND VIRTUAL ENVIRONMENTS;

(II) ABSTRACT PERCEPTIONS MADE UNDER SUBPARAGRAPH (I) INTO MODELS THROUGH ANALYSIS IN AN AUTOMATED MANNER;

AND (III) USE MODEL INFERENCE TO FORMULATE OPTIONS FOR INFORMATION OR ACTION BASED ON OUTCOMES UNDER SUBPARAGRAPHS (I) AND (II).

(2) THE TERM INCLUDES GENERATIVE ARTIFICIAL INTELLIGENCE.

"CLEAR AND CONSPICUOUS." A STATEMENT OR DISCLOSURE THAT MEETS ALL OF THE FOLLOWING CRITERIA:

(1) THE STATEMENT OR DISCLOSURE IS DISCLOSED IN A SIZE, COLOR, CONTRAST, LOCATION, DURATION AND AUDIBILITY THAT IS READILY NOTICEABLE, READABLE, UNDERSTANDABLE AND CAPABLE OF BEING HEARD.

ALL STATEMENTS AND DISCLOSURES SHALL BE PRESENTED IN THE LANGUAGE OR OTHER INTERACTION USED BY THE CONSUMER TO INTERACT WITH OR COMPREHEND THE SYNTHETIC CONTENT.

(2) THE STATEMENT OR DISCLOSURE DOES NOT CONTRADICT AND IS NOT INCONSISTENT WITH ANY OTHER INFORMATION WITH WHICH THE STATEMENT OR DISCLOSURE IS PRESENTED.

(3) IF THE STATEMENT OR DISCLOSURE MODIFIES, EXPLAINS OR CLARIFIES OTHER INFORMATION WITH WHICH THE STATEMENT OR DISCLOSURE IS PRESENTED:

(I) THE STATEMENT OR DISCLOSURE IS PRESENTED IN PROXIMITY TO THE INFORMATION THAT THE STATEMENT OR DISCLOSURE MODIFIES IN A MANNER THAT IS LIKELY TO BE NOTICED, READABLE AND UNDERSTANDABLE;

AND 20250SB0806PN1690 - 4 - (II) THE STATEMENT OR DISCLOSURE IS NOT TO BE OBSCURED IN ANY MANNER.

(4) IF THE STATEMENT OR DISCLOSURE IS AN AUDIO STATEMENT OR DISCLOSURE, THE STATEMENT OR DISCLOSURE IS DELIVERED IN A VOLUME AND CADENCE SUFFICIENT FOR A CONSUMER TO HEAR AND COMPREHEND THE STATEMENT OR DISCLOSURE.

(5) IF THE STATEMENT OR DISCLOSURE IS A VISUAL STATEMENT OR DISCLOSURE, THE STATEMENT OR DISCLOSURE IS OF A SIZE AND SHADE AND APPEARS ON THE SCREEN FOR A DURATION SUFFICIENT FOR A CONSUMER TO READ AND COMPREHEND THE STATEMENT OR DISCLOSURE.

(6) IF THE STATEMENT OR DISCLOSURE IS A PRINT ADVERTISEMENT OR PROMOTIONAL MATERIAL, INCLUDING A POINT-OF- SALE DISPLAY OR BROCHURE MATERIALS DIRECTED TO A CONSUMER, THE STATEMENT OR DISCLOSURE IS IN A TYPE SIZE AND LOCATION SUFFICIENTLY NOTICEABLE FOR A CONSUMER TO READ AND COMPREHEND THE STATEMENT OR DISCLOSURE IN A PRINT THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH THE STATEMENT OR DISCLOSURE APPEARS.

"GENERATIVE ARTIFICIAL INTELLIGENCE." THE CLASS OF MODELS THAT EMULATE THE STRUCTURE AND CHARACTERISTICS OF INPUT DATA IN ORDER TO GENERATE SYNTHETIC CONTENT.

"SYNTHETIC CONTENT." INFORMATION, INCLUDING AN IMAGE, VIDEO, AUDIO CLIP OR TEXT, THAT HAS BEEN SIGNIFICANTLY MODIFIED OR GENERATED BY ARTIFICIAL INTELLIGENCE.

SECTION 4.

CLEAR AND CONSPICUOUS DISCLOSURE.

(A) DISCLOSURE.--AN ADVERTISER MAY NOT KNOWINGLY, RECKLESSLY OR WILLFULLY CREATE AND DISSEMINATE OR CAUSE TO BE CREATED AND DISSEMINATED AN ADVERTISEMENT THAT USES SYNTHETIC CONTENT IN A MANNER THAT CREATES A FALSE CONSUMER PERCEPTION ABOUT THE 20250SB0806PN1690 - 5 - NATURE, ORIGIN OR AUTHENTICITY OF THE GOODS OR SERVICES BEING ADVERTISED, WITHOUT CLEAR AND CONSPICUOUS DISCLOSURE.

A DISCLOSURE UNDER THIS SECTION MUST STATE THAT THE ADVERTISEMENT CONTAINS CONTENT THAT WAS MODIFIED OR GENERATED USING ARTIFICIAL INTELLIGENCE.

THIS DISCLOSURE MUST BE:

(1) DISPLAYED IN THE FIRST INSTANCE WHENEVER THE SYNTHETIC CONTENT IS PRESENTED TO THE CONSUMER.