Amazon has introduced a new requirement for third-party sellers on its platform, mandating that they label product images and videos containing AI-generated people. The move comes in response to New York legislation requiring disclosure of synthetic performers in advertisements.
The company notified sellers of the policy change on Wednesday, according to an announcement viewed by CNBC. Sellers must now tag images and “A+ content” — which includes videos and other graphics on product listing pages — with specific metadata keywords before uploading them to the platform.
“Recent legislation requires disclosure when images or videos in advertisements contain photorealistic AI-generated people,” Amazon wrote in its announcement to sellers.
New York’s First-in-Nation Transparency Law
The New York law that prompted Amazon’s policy change took effect last month. It requires companies to disclose when “synthetic performers” replace human actors in advertising, specifically targeting digitally-created media that appears to show real people.
Governor Kathy Hochul’s office described the legislation as first-in-the-nation, emphasizing the importance of helping the public distinguish authentic content from AI-generated material. “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,” the governor’s office stated.
What’s Covered Under the New Policy
Amazon clarified that the requirement does not apply to content featuring television, video game, or movie characters. Content showing real people remains exempt even if it has been altered using AI technology.
The company indicated it will add an indicator to product listings on its website to inform consumers when images or content feature AI-generated people. However, Amazon has not disclosed the specific criteria it will use to determine when to display these labels to shoppers.
Growing AI Use Among Amazon Sellers
The policy change reflects the increasing adoption of AI tools among Amazon’s third-party seller community. More sellers are using artificial intelligence to generate text, images, and other content for their product listings, sometimes leveraging Amazon’s own tools for this purpose.
Third-party sellers represent a critical component of Amazon’s retail operations, accounting for more than 60% of goods sold on the marketplace. As AI technology becomes more accessible, its use in e-commerce content creation has grown substantially.
Broader Industry Trends
Amazon’s move aligns with broader industry efforts to address AI-generated content transparency. While no federal law currently requires companies to disclose AI-created advertising content, states have begun implementing their own regulations.
California recently began requiring large AI providers to embed watermarks in AI-generated images, video, and other content. Major social media platforms including Meta, TikTok, Pinterest, and YouTube have also added AI-generated content labels for videos and images uploaded to their services.
Some platforms have faced criticism for inadequate labeling practices. TikTok and Meta have recently come under fire for failing to properly label advertisements featuring AI-generated influencers promoting questionable products, occasionally without brand authorization. Both companies have stated they are taking steps to address these concerns, with TikTok banning accounts making misleading health claims and Meta implementing video labeling systems.
Amazon did not immediately provide additional comment on the policy implementation or how it plans to enforce seller compliance with the new labeling requirements.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/23/amazon-makes-sellers-label-ai-generated-people-in-images-after-ny-law.html
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