Artificial intelligence has advanced by leaps and bounds over the past four years, to the point that even the most discerning consumers now struggle to spot misleading AI real estate listing photos or videos. The consequences can be bothersome, like wasting $100 on a fashion-week-worthy dress that doesn’t exist, or life-changing, like being duped into a contract for a property that looks nothing like the one shown online.
D.C.’s City Council is considering a consumer protection bill that will require agents, brokers and property managers to disclose when they’ve used AI to edit or generate listing photos.
Christina Henderson | Credit: DC Council
“AI-altered real estate listings have become common practice in the District, and prospective renters and buyers should know when the images they are viewing do not accurately represent a property,” D.C. Councilmember Christina Henderson said in an announcement last week. “While this practice is not inherently problematic, digital editing can be used to change unit sizes, architectural features, finishes, fixtures and appliances, and even views through windows. Those misrepresentations waste consumers’ time and, on occasion, their money.”
The bill, dubbed the Restricting Editing and Alterations in Listing Photos Amendment Act of 2026, also requires listings to include the unedited versions of photos and a written list of the “material differences between the digitally altered image and the real property’s actual condition, features and amenities.”
The Department of Licensing and Consumer Affairs would handle consumer complaints, Henderson’s spokesperson explained in an email to Inman. Meanwhile, the District of Columbia Department of Licensing and Consumer Protection (DLCP) would handle disciplinary action, including fines of up to $2,500.
“By establishing clear rules for digitally altered photos, the District can ensure renters and buyers have better information in an already complicated housing market,” Henderson added.
DC is not alone
D.C. is the third legislature to consider this kind of bill, following California and New York.
California’s Altered Image Law took effect at the start of the year and requires “a real estate broker or salesperson, or person acting on their behalf” to disclose when they’ve included digitally altered images in any promotional material related to the sale of a property. For online marketing, brokers are also required to include the unedited photos directly on the listing or on another landing page that buyers can reach through a URL link or QR code.
The law covers the addition, removal or editing of interior and exterior elements, like fixtures, furniture, flooring and paint colors, and excludes common editing choices, like color correction, straightening and cropping. Those who “willfully violate” the law can face multiple listing service (MLS) fines and a misdemeanor charge with a maximum fine of $10,000.
Meanwhile, New York’s state assembly and senate are considering two bills — A11365 and S9584 — that require brokers and agents to disclose when they’ve altered images or other media, like a 3D walkthrough, using AI or other tools. New York City legislators are also proposing a similar law for rental listings, following findings from Mayor Zohran Mamdani’s “Rental Ripoff” initiative, which aims to crack down on predatory rental practices across the city’s five boroughs.
Even in states without this kind of law, Realtors still need to be careful: the National Association of Realtors Code of Ethics prohibits its members from “exaggerating, misrepresenting or concealing pertinent facts of a property (Article 2) and to present a true picture in advertising and marketing (Article 12).”
