On Sept. 16, 2026, California enacted SB 1050, which imposes significant disclosure requirements on the use of a “synthetic performer” in advertisements.

SB 1050 defines a “synthetic performer” as a human-like digital voice, figure, or representation—created at least in part using generative artificial intelligence—that is not based on, or intended to depict, an identifiable natural person.

In a press release, Gov. Gavin Newsom described this legislation as “building on our nation-leading AI regulations and putting commonsense guardrails in place to protect consumers, performers, and promote stronger transparency.”

Disclosure Requirements

SB 1050 makes it unlawful to create or cause to be published an advertisement that prominently includes a synthetic performer without a clear and conspicuous disclosure that the advertisement includes a synthetic performer.

The new law defines a “clear and conspicuous” disclosure as one that is difficult to miss, easily understandable, and presented in a manner that a reasonable consumer would notice, read, and comprehend. The bill confirms that what is “reasonable” may vary based on the medium, format, and context in which the advertisement appears.

SB 1050 also requires that the disclosure:

  • Appear in close proximity to the synthetic performer;
  • Be presented in a manner and duration sufficient for a reasonable consumer to understand that the performer is not a real human being; and
  • Use wording substantially similar to “this performance features a synthetic performer,” or “no human performer is depicted.”

Exemptions

The new law expressly carves out the use of synthetic performers in advertisements for expressive works, such as motion pictures, TV programs, streaming content, documentaries, video games, and other similar audiovisual works. This exemption only applies, however, if the synthetic performer is “consistent with its use in the expressive work.”

Enforcement

SB 1050 channels enforcement through California’s existing consumer-protection framework. A violation of the new law also constitutes a violation of California’s false advertising law (Bus. & Prof. Code § 17500) and unfair competition law (Bus. & Prof. Code § 17200). As a result, companies that violate SB 1050 may be subject not only to enforcement actions by the California Attorney General, but also lawsuits by private litigants.

As drafted, SB 1050 does not include an actual knowledge requirement for liability.

Takeaways for Businesses

SB 1050 follows similar legislation enacted in New York that took effect June 9, 2026. The New York law, S.8420-A/A.8887-B, requires any person to conspicuously disclose the use of a synthetic performer in an advertisement. Unlike SB 1050, however, the New York law applies regardless of whether the disclosure is prominent and expressly imposes an actual knowledge requirement. Additionally, while both laws carve out expressive works, the New York law also provides exemptions for audio advertisements and the use of AI in language translation.

With New York first and California close behind, synthetic performer disclosures appear to have emerged as a distinct regulatory category in state marketing and advertising laws. Other states may follow, and companies advertising nationwide should consider monitoring these developments closely.

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Photo of Timothy A. Butler Timothy A. Butler

Tim Butler helps companies thrive by developing tailored strategies to address their regulatory compliance challenges and vigorously defending them in government enforcement actions and bet-the-company lawsuits.

A former prosecuting attorney for the Federal Trade Commission (FTC) and former senior official in the Georgia…

Tim Butler helps companies thrive by developing tailored strategies to address their regulatory compliance challenges and vigorously defending them in government enforcement actions and bet-the-company lawsuits.

A former prosecuting attorney for the Federal Trade Commission (FTC) and former senior official in the Georgia Attorney General’s Office, Tim has led the defense of dozens of government investigations and enforcement actions brought by the FTC, the Consumer Financial Protection Bureau (CFPB), and the various state attorneys general. Tim also regularly defends clients in bet-the-company lawsuits, including complex business disputes and consumer class actions alleging privacy, false advertising, and unfair or deceptive business practice claims.

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A graduate of the University of Chicago and Stanford Law School, Tim is a prolific author and regularly speaks to industry and trade groups about the evolving privacy landscape, about cutting-edge issues affecting payments and fintech companies, and about developments at the FTC, the CFPB, and within the state attorneys general community.

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Matt White guides clients through regulatory compliance challenges and represents clients in regulatory and civil investigations and litigation.

Matt has counseled fintech and payment companies on regulatory compliance matters, including those involving the Electronic Fund Transfer Act, the Fair Credit Reporting Act, the…

Matt White guides clients through regulatory compliance challenges and represents clients in regulatory and civil investigations and litigation.

Matt has counseled fintech and payment companies on regulatory compliance matters, including those involving the Electronic Fund Transfer Act, the Fair Credit Reporting Act, the Gramm-Leach-Bliley Act, the Truth in Lending Act, and their respective implementing regulations (Regulations E, V, P, and Z). Adept with the Consumer Financial Protection Bureau’s (CFPB) Prepaid Rule, Matt has provided guidance regarding prepaid cards and related compliance.

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Photo of Cody B. Davis Cody B. Davis

Cody Davis advises clients on regulatory compliance, data privacy, and consumer protection matters within the financial technology sector, with a focus on payments, emerging platforms, and evolving regulatory frameworks. He works with companies navigating complex federal and state requirements, including regulatory compliance, government…

Cody Davis advises clients on regulatory compliance, data privacy, and consumer protection matters within the financial technology sector, with a focus on payments, emerging platforms, and evolving regulatory frameworks. He works with companies navigating complex federal and state requirements, including regulatory compliance, government investigations, and risk management across the fintech ecosystem.

Cody also has prior experience working with clients in the health care space on mergers and acquisitions as well as regulatory compliance with HIPAA, state telehealth rules, and facility licensure requirements.