Ottobar In Baltimore Slapped With Near-$20,000 Penalty Over Unlicensed Karaoke Songs

Performance rights organization BMI and a group of music publishers have been awarded over $18,000 in statutory damages from Baltimore’s Ottobar for unlicensed karaoke songs. Performance rights organization Broadcast Music Inc. (BMI) and three music publishers have been awarded more than $18,000 in statutory damages and attorney’s fees after Baltimore music venue Ottobar was found […]

New York AI Advertising Disclosure Requirement Now in Effect

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As of June 9, 2026, New York requires certain advertisements that use artificial intelligence-generated human performers to include a disclosure informing consumers that the advertisement contains a synthetic performer.

What Counts as a Synthetic Performer?

Governor Hochul’s office described the measure as the “first-in-the-nation” law aimed at increasing transparency around the use of AI in advertising. The law applies to commercial advertisements that depict a “synthetic performer,” defined as a digitally created, reproduced, or modified asset generated through artificial intelligence or other software that creates the impression of a human performer, but is not recognizable as any actual person.

FTC Guidance on AI Advertising Disclosures

While the law requires a disclosure, it provides little guidance regarding what that disclosure must say or how it must appear. The statute requires only that the disclosure be “conspicuous.” In the absence of regulatory guidance, advertisers should consider applying principles from the Federal Trade Commission’s “clear and conspicuous” disclosure standard. The FTC takes the position that these disclosures should be prominent, readily noticeable, and understandable to consumers, taking into account factors such as placement, proximity, size, contrast, and duration.

Key Exemptions Under the New Law

The law contains several notable exemptions. It does not apply to expressive works, including films, television programs, streaming content, documentaries, video games, and similar audiovisual productions. Audio-only advertisements also fall outside the statute, as do advertisements that use AI solely for translation purposes.

The statute leaves open a number of questions regarding the use of AI in advertising. For example, it does not directly address situations in which AI is used to enhance, alter, or modify images or videos of real people. The definition of “synthetic performer” appears to exclude those uses, but it remains to be seen how regulators will interpret and enforce the law in practice.

Preparing for AI Advertising Compliance

Advertisers should review existing and planned campaigns to determine whether they feature AI-generated or otherwise synthetic performers. Companies that use such content should consider implementing disclosure requirements, updating creative and legal review processes, and revisiting agreements with agencies, production companies, and other vendors to ensure compliance with the new law and to reduce enforcement risk.

For more insights into advertising law, bookmark the All About Advertising Law blog and subscribe to our monthly newsletter. To learn more about Venable’s Advertising Law services, click here. And listen to the Ad Law Tool Kit Show—a podcast from Venable.

Braaten, Aron Matthews, ODBLU – Take Me Home (Lyrics)

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