A4728

An Act concerning photo advertising of dwelling units and dwelling sites and supplementing Title 45 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. As used in this section:

“Buyer” means the same as that term is defined in section 1 of P.L.2024, c.32 (C.45:15-16.86), to include an actual or prospective tenant in a real estate rental or lease transaction.

“Buyer’s agent” means the same as that term is defined in section 1 of P.L.2024, c.32 (C.45:15-16.86).

“Generative artificial intelligence” means a technology system that: (1) is trained on data; (2) is designed to simulate human connection through text, audio, or visual communication; and (3) generates non-scripted outputs with limited or no human oversight.

“Seller” means the same as that term is defined in section 1 of P.L.2024, c.32 (C.45:15-16.86), to include an actual or prospective landlord in a real estate rental or lease transaction. In the case of a mobile or manufactured home park, “seller” shall include the owner of an individual dwelling unit within the mobile or manufactured home park, if the dwelling unit is leased by the owner of the individual dwelling unit, and shall include the owner of the dwelling site that is leased to the owner of an individual dwelling unit.

“Seller’s agent” means the same as that term is defined in section 1 of P.L.2024, c.32 (C.45:15-16.86).

b. In advertising a dwelling unit or, in the case of a mobile or manufactured home park, dwelling site for sale, a seller or seller’s agent shall not utilize photos of the dwelling unit or dwelling site which have been, in whole or in part, created or edited with the use of generative artificial intelligence or other photo editing software intended to fundamentally alter an image. A photo used to advertise a dwelling unit or dwelling site for sale shall:

(1) reflect the actual, current state of the dwelling unit or dwelling site; and

(2) be not older than five years.

c. Notwithstanding the provisions of subsection b. of this section, in advertising a dwelling unit or, in the case of a mobile or manufactured home park, dwelling site for sale, a seller or seller’s agent may utilize generative artificial intelligence or other photo editing software for the purpose of adding furniture and other non-fixed items to an image that otherwise reflects the actual, current state of the dwelling unit or dwelling site. The use of generative artificial intelligence or other photo editing software pursuant to this section shall not be for the purpose of disguising a flaw in the dwelling unit or dwelling site.

d. A seller or seller’s agent that elects to utilize generative artificial intelligence or other photo editng software pursuant to subsection c. of this section shall:

(1) disclose the use of generative artificial intelligence or other photo editing software in each advertisement of the dwelling unit or dwelling site; and

(2) upon request, provide the original, unaltered images of the dwelling unit or dwelling site to a buyer or buyer’s agent.

f. A seller or seller’s agent who violates a provision of P.L. , c. (C. ) (pending before the Legislature as this bill), or any rule or regulation adopted pursuant thereto, shall be subject to a civil penalty of $500 for the first offense and up to $1,000 for the second and each subsequent offense, to be collected in a civil action by a summary proceeding under the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court and the municipal court shall have jurisdiction to enforce the provisions of the “Penalty Enforcement Law of 1999” pursuant to this subsection.

2. The New Jersey Real Estate Commission may promulgate, pursuant to the “Administrative Procedure Act,” P.L. 1968, c.410 (C.52:14B-1 et seq.), any regulations as are necessary to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

3. This act shall take effect on the first day of the second month next following enactment except that the New Jersey Real Estate Commission may take anticipatory action as may be necessary.

STATEMENT

The bill concerns photo advertising of dwelling units and dwelling sites for lease or sale.

The bill provides that sellers in real estate transaction, as defined in the bill to include landlords and prospective landlords, are prohibited from utilizing photos in an advertisement to lease a dwelling unit or dwelling site which have been, in whole or in part, created or edited with the use of generative artificial intelligence or other photo editing software intended to fundamentally alter an image. The bill also provides that photos used in advertising a dwelling unit or dwelling site are required to: 1) reflect the actual, current state of the dwelling unit or dwelling site; and 2) be not older than five years. Notwithstanding the bill’s provisions, a seller would still be permitted to utilize generative artificial intelligence or other photo editing software for the purpose of adding furniture and other non-fixed items to an image that otherwise reflects the actual, current state of the dwelling unit or dwelling site. A seller that engages in a permitted use of generative artificial intelligence or other photo editing software pursuant to the bill, would be required to: disclose the use of generative artificial intelligence or other photo editing software in each advertisement of the dwelling unit or dwelling site; and, upon request, provide the original images of the dwelling unit or dwelling site to a prospective buyer or tenant.

A seller or seller’s agent who violates the provisions of the bill would be subject to a civil penalty of $500 for the first offense and up to $1,000 for the second and each subsequent offense.

The bill permits the New Jersey Real Estate Commission to promulgate regulations as may be necessary to effectuate the provisions of the bill. The bill would take effect on the first day of the second month following enactment except that the New Jersey Real Estate Commission would be permitted to take anticipatory action if necessary.