It took effect on January 1, 2026.
In practical terms, the law requires two things
- If an image in your advertising has been digitally altered, you must include a disclosure saying so.
- You must give consumers access to the original, unaltered image, for example by posting it alongside the altered version or linking to it.
What counts as an alteration? Using photo editing software or AI to add, remove or change elements of the property, such as furniture, fixtures, flooring, wall finishes, landscaping, exteriors, views or neighboring structures. Virtual staging falls into this category.
Routine adjustments to lighting, exposure, color balance, sharpness and cropping are generally not covered, as long as they don't change how the property is represented. Why it passed: lawmakers and consumer advocates were concerned that AI editing made it easy to present homes inaccurately, a problem the industry now calls housefishing.
How to comply day to day
- Keep every original photo file, organized by listing.
- Label altered images clearly, for example "Virtually staged" or "Digitally altered."
- Post or link the original wherever the altered image appears, including listing sites and your own website.
- Apply the same approach to video. If a clip shows virtual staging or other edits, disclose it.
- Brief your photographer and editor so their edits line up with what you plan to disclose.
AB 723 applies to California licensees, but similar rules are spreading. Wisconsin's Act 69 begins January 1, 2027, and many MLSs elsewhere already require labels. This is general information, not legal advice, so check the bill text and your broker's policy for specifics.