Amazon cracks down on use of AI images by sellers after New York law

News
 |  
Jul 2026
 |  
CNBC
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What: Amazon is requiring sellers to label product content that features AI-generated people in response to New York’s synthetic performer law.

Why it is important: This matters because AI-generated commercial imagery is moving from experimentation into regulated marketplace workflows.

Amazon is requiring third-party sellers to label product images, videos and A+ content that feature AI-generated people, following a New York law requiring disclosure when advertisements use synthetic performers instead of human actors. Sellers must add specific metadata keywords before uploading affected content, and Amazon says it will add consumer-facing indicators to listings where applicable. The New York law, described by Governor Kathy Hochul as first-in-the-nation, applies to digitally created media that appears to show a real person. Amazon clarified that the rule does not apply to TV, video game or movie characters, or to real people whose images have been altered with AI.
The policy comes as more sellers use AI to generate listing text, images and videos, including through Amazon’s own tools. Third-party sellers account for more than 60% of goods sold on Amazon’s marketplace, making the rule significant for marketplace operations. The article places Amazon’s move within a broader transparency trend, as states and platforms introduce labels, watermarks and disclosure rules for AI-generated content.

IADS Notes: Amazon’s new seller labelling rule sits within a widening regulatory push to make AI-generated commercial imagery more transparent without slowing the operational use of generative tools. In June 2026, Reuters reported that European retailers were seeking exemptions from broad AI ad disclosure rules, arguing that routine AI-assisted visuals should not be treated like deceptive deepfakes. Inside Retail’s June 2026 coverage of Korea’s stricter AI advertising rules showed the opposite pressure: regulators want clearer labels to prevent consumer confusion as AI-generated endorsers and content spread. The Financial Times’ September 2025 analysis of AI influencers highlighted the same tension between scalable synthetic marketing and the need for authenticity. Journal du Net’s July 2026 work on AI e-commerce catalogues reinforced that product imagery needs traceability, quality control and governance before it can scale, while its February 2026 analysis of fashion imagery showed that AI can reduce production costs only if brands still meet marketplace standards and protect identity.

Amazon cracks down on use of AI images by sellers after New York law