Relates to digital representations in real estate listings

◆ The sponsor's argument

Why Rachel May says this is needed

Buying or renting a home is one of the most significant decisions most New Yorkers will make. For many, the search begins online, where list- ings are expected to provide a reliable picture of what a property actu- ally looks like. Increasingly, that expectation is not being met. Advances in artificial intelligence and digital editing tools have made it easy to enhance listing photos in ways that go well beyond tradi- tional staging. Images can now remove signs of damage, add features that do not exist, or make rooms appear larger and brighter than they are. Virtual tours can be reconstructed or generated to suggest layouts and spaces that are materially different from reality. A prospective buyer may take time off work, travel to a showing, and arrange financing based on what appears to be an accurate listing, only to arrive and find some- thing entirely different. This gap between representation and reality is more than an inconven- ience. It wastes time and money, distorts pricing and market expecta- tions, and erodes trust in the real estate market. It also creates an uneven playing field, where those who use increasingly aggressive digital manipulation gain an advantage over those who present properties honestly. New York law already requires that advertising be truthful and not misleading, and the Department of State has recently warned that AI-gen- erated or heavily altered listing images may violate these standards. However, the rapid development of these tools has created uncertainty about how existing law applies, particularly with respect to virtual tours and imrnersive media that purport to show the layout and spatial relationships of a property. This bill provides clarity. It allows reasonable enhancements, such as basic lighting adjustments or virtual staging that does not mislead. Instead, it draws a clear line: digital representations may not mate- rially misrepresent a property or interfere with a reasonable consumer's understanding of it. By explicitly addressing images and virtual tours, and by requiring clear disclosure where alterations are used, the bill ensures that consumers can rely on listings as meaningful previews rath- er than marketing fiction. In short, this legislation ensures that as technology evolves, the basic expectation of honesty in real estate listings remains intact.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.