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

PRIOR PRINTER'S NO.NOS.

871871, 1690 PRINTER'S NO.

16901808 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

806 2025 INTRODUCED BY PISCIOTTANO, PENNYCUICK, MILLER, KANE, SANTARSIERO,TARTAGLIONE, GEBHARD,FONTANA, MALONE,HAYWOOD, BROOKSHUGHES, ANDVOGEL, BOSCOLA,TA,COSTA, SAVAL, JUNESANTARSIERO, 3,GEBHARD, 2025MALONE, SENMAYBROOKS, 6,BOSCOLA 2026UICK, COMMUNICATIONS AND TECHNOLOGY,FARRY, ASJUNE AMENDED,3, AN2025 ACTAS AmendingAMENDED theON actTHIRD ofCONSIDERATION, DecemberJUNE 17,10, 19682026 (P.L.1224,AN No.387),ACT <--Providing entitledfor "An act prohibiting unfair methods of competition and unfairfor orenforcement deceptive acts or practices in the conduct of any trade or commerce, giving the Attorney General and Districtpenalties. 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:

SectionShort 2(4)title. 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:

This act shall be known and may be cited as the Artificial Intelligence Deceptive Advertising Act.

Definitions.--AsScope usedof in this act.

*This *act *relates (4)to "Unfair methods of competition" and "unfair or deceptive actsadvertising. or practices" mean any one or more of the following:

*Section *3. * (xx.1) Knowingly or recklessly creating, distributing or publishing any content generated by artificial intelligence without clear and conspicuous disclosure, including written text, images, audio and video content and other forms of media.

ADefinitions. disclosure under this subclause must state that the content was generated using artificial intelligence, must be displayed in the first instance when the content is presented to the consumer, must be presented in a manner reasonably understandable and readily noticeable to the consumer and must be presented in the same medium as the content.

*The *following *words (14)and "Artificialphrases intelligence"when meansused technologyin orthis toolsact thatshall usehave predictivethe algorithmsmeanings given to createthem newin content,this includingsection audio,unless code,the images,context text,clearly simulationsindicates orotherwise: videos.

(15)"Artificial "Clearintelligence" andor conspicuous""AI." means(1) A machine-based system that can, for a statementgiven set of human-defined objectives, make predictions, recommendations or disclosuredecisions thatinfluencing meetsreal allor ofvirtual environments, including the followingability criteria:to:

(i) Theperceive statementreal or disclosure is disclosed in a size, color, contrast, location, duration and audibilityvirtual thatenvironments; is readily noticeable, readable, understandable and capable of being heard.

(ii) Theabstract statementperceptions ormade disclosureunder doessubparagraph not(i) contradictinto andmodels isthrough notanalysis inconsistentin withan anyautomated othermanner; information with which the statement or disclosure is presented.

and (iii) Ifuse themodel statementinference orto disclosureformulate modifies,options explainsfor information or clarifiesaction otherbased informationon withoutcomes whichunder thesubparagraphs statement(i) orand disclosure(ii). is presented:

(A)(2) theThe statementterm orincludes disclosuregenerative isartificial presentedintelligence. in proximity to the information that the statement or disclosure modifies in a manner that is likely to be noticed, readable and understandable;

"Clear and 20250SB0806PN1690conspicuous." -A 2 - (B) the statement or disclosure isthat notmeets toall beof obscuredthe infollowing anycriteria: manner.

(iv)(1) IfThe the statement or disclosure is andisclosed audioin statementa orsize, disclosure,color, thecontrast, statementlocation, orduration disclosure is delivered in a volume and cadenceaudibility sufficientthat foris areadily consumernoticeable, toreadable, hearunderstandable and comprehendcapable theof statementbeing orheard. disclosure.

(v)All Ifstatements theand statementdisclosures orshall disclosurebe ispresented ain visual statement or disclosure, the statementlanguage or disclosureother isinteraction ofused aby size and shade and appears on the screen for a duration sufficient for a consumer to readinteract andwith or comprehend the statementsynthetic orcontent. disclosure.

(vi)(2) IfThe the statement or disclosure isdoes anot printcontradict advertisementand or promotional material, including a point-of-sale display or brochure materials directed to a consumer, the statement or disclosure is innot ainconsistent typewith sizeany andother locationinformation 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.is presented.

Section(3) 2.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 (ii) the statement or disclosure is not to be 20250SB0806PN1808 - 2 - 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 nature, origin or authenticity of the goods or services being 20250SB0806PN1808 - 3 - 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.

(2) Presented in the same medium as the synthetic content.

(3) To the extent technically feasible, permanent or extraordinarily difficult to remove from the synthetic content.

(b) Exceptions.--Subsection (a) shall not include content that is:

(1) evidently fictional based on the content or context of the depiction;

(2) parody, satire, commentary or criticism;