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

by THEFUTURE.TEAM

July 24, 2026

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.

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“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.

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Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

August 17, 2026

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

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IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.