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Amazon Tightens AI Disclosure Rules For Marketplace Listings As New York Cracks Down On Synthetic Ads

Amazon is tightening its rules on AI-generated content in marketplace listings, requiring third-party sellers to disclose images and videos featuring photorealistic AI-generated people following a new New York law aimed at increasing transparency in advertising.

New Disclosure Standards For Sellers

Amazon has introduced new disclosure requirements for third-party sellers. Under the new rules, sellers must apply specific metadata tags to images and “A+ content,” the company’s enhanced listing materials, including videos and graphics, before uploading them.

“Recent legislation requires disclosure when images or videos in advertisements contain photorealistic AI-generated people,” Amazon said.

New York Law Drives The Change

The policy follows a New York law that took effect last month, requiring advertisers to disclose when “synthetic performers” replace human actors. The measure applies to digitally created media that appears to depict a real person.

Governor Kathy Hochul described the legislation as the first of its kind in the United States.

“Without notice that the content the public is viewing is not real, AI-generated synthetic performers and manipulated media can undermine one’s ability to accurately distill fact from fiction,” her office said.

What The Policy Covers

Amazon said the requirement does not apply to TV, movie or video game characters, or to images of real people modified using AI.

The company will also display a label on eligible listings to notify shoppers when images or other content include AI-generated people. It has not disclosed the criteria it will use to determine when the label will appear.

AI’s Expanding Role Across Amazon

The move comes as Amazon continues to expand AI across its marketplace.

The company has optimized product listings for AI-powered search, expanded its recently rebranded Alexa for Shopping assistant, and introduced search features that generate product recommendations based on user queries.

Third-party sellers, who account for more than 60% of marketplace sales, are also increasingly using AI, including Amazon’s own tools, to create product descriptions, images and other listing content.

Regulation Is Gathering Pace

The United States has no federal requirement for AI disclosure in advertising, leaving states and platforms to introduce their own rules.

California recently began requiring major AI providers to embed watermarks in AI-generated images, videos and other content. Meta, TikTok, Pinterest and YouTube have also introduced labels for AI-generated material.

Questions over enforcement remain. TikTok and Meta have faced criticism for inconsistently labeling advertisements featuring AI-generated influencers promoting questionable products, in some cases without brands’ knowledge. TikTok says it has removed accounts making misleading health claims, while Meta says it labels AI-generated videos.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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