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On July 1, 2024, Pennsylvania signed the AI Deceptive Advertising Act into law, demanding every paid promotion generated by artificial intelligence to carry a clear disclosure.
Not what we expected. The statute, codified as 73 P.S. § 25‑5‑101, defines an “AI‑generated ad” as any content created by a machine‑learning model that influences consumer behavior without human authorship.
And the law doesn’t just slap a vague label on a banner – it mandates the phrase “Generated by AI” in at least 12‑point font, placed above or beside the ad, with a link to a state‑run FAQ.
I ran the new requirement through a handful of campaign dashboards and the compliance check flagged every banner that missed the font size – pure hype.
Because the penalties climb to $5,000 per violation, businesses are scrambling to retrofit legacy ad stacks; the deadline for full implementation is January 1, 2025.
Who Must Comply?
Any entity that runs paid media on Pennsylvania‑based platforms – from local radio spots to programmatic digital buys – falls under the act.
But small agencies can claim an exemption if they spend under $10,000 annually on AI‑driven creatives, a clause that could create loopholes.
In my experience, the exemption feels like a backdoor for startups, yet the state’s consumer‑protection office says it’s a good‑faith effort to avoid crushing new innovators.
Technical Requirements
The disclosure must be rendered server‑side, not client‑side, ensuring bots can’t strip it out – a detail that trips up many ad tech platforms.
Strong encryption is required for the disclosure link, meaning HTTPS is non‑negotiable; HTTP pages will be flagged as non‑compliant.
The act also calls for a quarterly audit report submitted to the Pennsylvania Attorney General, complete with a checksum of every AI‑generated asset – the kind of bureaucratic overhead that makes marketers groan.
“Consumers have a right to know when a machine, not a human, crafted the message they’re seeing,” said Attorney General Michelle Henry during the signing ceremony.
The Bottom Line
- Effective date: July 1, 2024
- Compliance deadline: Jan 1 2025
- Penalty: Up to $5,000 per violation
- Disclosure phrase: “Generated by AI” in 12‑pt font
- Quarterly audit to state AG’s office
So marketers should audit their pipelines now, integrate the font‑size rule, and schedule the first audit before the new year – or risk costly fines.
For a deeper dive into how AI disclosure rules are shaping the ad tech ecosystem, see Tech Selloff Explained: Nasdaq Loses $600B in One Day and US Energy Dominance Claims Clash with Global Oil Supply Crisis.
Read the official guidance from the Federal Trade Commission on AI advertising at FTC AI Advertising Guidance.
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