Assembly Bill A11403

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11403
 
                           I N  A S S E M B L Y
 
                               May 15, 2026
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weprin) --
   read once and referred  to  the  Committee  on  Consumer  Affairs  and
   Protection
 
 AN  ACT  to amend the general business law and the real property law, in
   relation to digital representations in real estate listings
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 349-i to read as follows:
   §  349-I.  DIGITAL REPRESENTATIONS IN REAL ESTATE LISTINGS. 1. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (A) "DIGITAL REPRESENTATION" MEANS ANY IMAGE, VIDEO, OR INTERACTIVE OR
 IMMERSIVE  MEDIA  USED  TO  ADVERTISE OR MARKET REAL PROPERTY, INCLUDING
 VIRTUAL TOURS.
   (B) "VIRTUAL TOUR" MEANS  ANY  INTERACTIVE,  PANORAMIC,  OR  SIMULATED
 WALKTHROUGH  THAT REPRESENTS THE LAYOUT OR SPATIAL RELATIONSHIPS OF REAL
 PROPERTY.
   (C) "MATERIAL ALTERATION" MEANS A MODIFICATION  THAT  WOULD  AFFECT  A
 REASONABLE   CONSUMER'S  UNDERSTANDING  OF  REAL  PROPERTY'S  CONDITION,
 FEATURES, OR LAYOUT.
   2. IT SHALL CONSTITUTE AN  UNFAIR,  DECEPTIVE  OR  ABUSIVE  ACT  UNDER
 SECTION  THREE  HUNDRED FORTY-NINE OF THIS ARTICLE AND FALSE ADVERTISING
 UNDER SECTION THREE HUNDRED FIFTY OF THIS ARTICLE TO USE  OR  PUBLISH  A
 DIGITAL  REPRESENTATION OF REAL PROPERTY CONTAINING MATERIAL ALTERATIONS
 THAT MATERIALLY MISREPRESENT, OR MATERIALLY INTERFERE WITH, A REASONABLE
 CONSUMER'S UNDERSTANDING OF:
   (A) THE CONDITION OF THE PROPERTY;
   (B) THE EXISTENCE OF PHYSICAL FEATURES OR IMPROVEMENTS; OR
   (C) THE LAYOUT, DIMENSIONS, OR SPATIAL RELATIONSHIPS OF THE PROPERTY.
   3. (A) ANY DIGITAL REPRESENTATION THAT  HAS  BEEN  MATERIALLY  ALTERED
 SHALL  INCLUDE  A  CLEAR  AND  CONSPICUOUS DISCLOSURE THAT SUCH MATERIAL
 ALTERATIONS ARE PRESENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15359-01-6
              

 A. 11403                            2
 
   (B) WHERE VIRTUAL STAGING IS  USED,  A  DIGITAL  REPRESENTATION  SHALL
 DISCLOSE THAT FURNISHINGS OR FINISHES WERE DIGITALLY ADDED.
   (C)  NO DIGITAL ALTERATION SHALL ADD NON-EXISTENT PHYSICAL FEATURES OR
 REMOVE OR CONCEAL KNOWN MATERIAL DEFECTS IN REAL PROPERTY WITHOUT  CLEAR
 AND CONSPICUOUS DISCLOSURE.
   4. (A) A VIRTUAL TOUR SHALL NOT MATERIALLY MISREPRESENT, OR MATERIALLY
 INTERFERE  WITH  A  REASONABLE  CONSUMER'S  UNDERSTANDING OF THE LAYOUT,
 DIMENSIONS, OR SPATIAL RELATIONSHIPS OF A REAL PROPERTY.
   (B) A VIRTUAL TOUR THAT INCLUDES DIGITALLY  GENERATED,  RECONSTRUCTED,
 OR  CONCEPTUAL  ELEMENTS THAT DO NOT DEPICT REAL PROPERTY AS IT ACTUALLY
 EXISTS SHALL BE CLEARLY AND CONSPICUOUSLY LABELED  AS  A  CONCEPTUAL  OR
 AI-GENERATED REPRESENTATION.
   (C)  NO  VIRTUAL TOUR SHALL DEPICT SPACES, FEATURES, OR CONFIGURATIONS
 THAT DO NOT EXIST, EXCEPT WHERE CLEARLY AND CONSPICUOUSLY DISCLOSED.
   5. THE USE OR PUBLICATION OF  A  DIGITAL  REPRESENTATION  THAT  IS  IN
 VIOLATION  OF  SUBDIVISION  TWO,  THREE  OR  FOUR  OF  THIS SECTION BY A
 LICENSED REAL ESTATE BROKER OR SALESPERSON SHALL CONSTITUTE  UNTRUSTWOR-
 THINESS  OR  INCOMPETENCY  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION ONE OF
 SECTION FOUR HUNDRED FORTY-ONE-C OF  THE  REAL  PROPERTY  LAW,  AND  THE
 DEPARTMENT  OF  STATE  SHALL BE AUTHORIZED TO REVOKE THE LICENSE OF SUCH
 REAL ESTATE BROKER OR SALESPERSON, SUSPEND SUCH  LICENSE,  OR  IMPOSE  A
 FINE IN ACCORDANCE WITH SUCH SECTION FOR SUCH VIOLATION.
   6.  THE ATTORNEY GENERAL SHALL BE AUTHORIZED TO ENFORCE THE PROVISIONS
 OF THIS SECTION AS PROVIDED UNDER THIS ARTICLE.
   7. THE DEPARTMENT OF STATE MAY ISSUE GUIDANCE OR PROMULGATE  RULES  OR
 REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION, INCLUDING STAN-
 DARDS  FOR  DISCLOSURES  AND  EXAMPLES  OF PERMISSIBLE AND IMPERMISSIBLE
 PRACTICES.
   8. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO  PROHIBIT  VISUAL
 ENHANCEMENTS  THAT  DO  NOT  MATERIALLY  AFFECT  A REASONABLE CONSUMER'S
 UNDERSTANDING OF A REAL PROPERTY'S CONDITION, FEATURES, OR LAYOUT.
   (B) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE USE  OF
 DIGITAL  REPRESENTATIONS  DEPICTING PROPOSED REMODELING, RECONSTRUCTION,
 OR NEW CONSTRUCTION THAT DOES NOT YET EXIST, PROVIDED THAT SUCH  DIGITAL
 REPRESENTATIONS  ARE  CLEARLY AND CONSPICUOUSLY LABELED AS CONCEPTUAL OR
 PROPOSED AND NOT DEPICTING THE REAL PROPERTY AS IT CURRENTLY EXISTS, AND
 ARE NOT PRESENTED IN A MANNER LIKELY TO MISLEAD A REASONABLE CONSUMER.
   § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
 erty law, as amended by chapter 529 of the laws of 2022, is  amended  to
 read as follows:
   (a)  The  department  of state may revoke the license of a real estate
 broker or salesperson or suspend  the  same,  for  such  period  as  the
 department  may  deem  proper,  or in lieu thereof may impose a fine not
 exceeding two thousand dollars  payable  to  the  department  of  state,
 provided  that fifty percent of all moneys received by the department of
 state for such fines shall be  payable  to  the  anti-discrimination  in
 housing  fund  established  pursuant  to  section  eighty-a of the state
 finance law, or a  reprimand  upon  conviction  of  the  licensee  of  a
 violation of any provision of this article, or for a violation of subdi-
 vision  four of section four hundred forty-two-h of this article, or for
 a material misstatement in the application for such license, or if  such
 licensee  has  been  guilty  of  fraud  or  fraudulent practices, or for
 dishonest or misleading advertising, or has demonstrated  untrustworthi-
 ness  or  incompetency  to  act  as  a real estate broker or salesperson
 INCLUDING AS PROVIDED UNDER SUBDIVISION FIVE OF  SECTION  THREE  HUNDRED
 FORTY-NINE-I  OF THE GENERAL BUSINESS LAW, or for a violation of article
 A. 11403                            3
 
 fifteen of the executive law committed  in  their  capacity  as  a  real
 estate  broker or salesperson, as the case may be. In the case of a real
 estate broker engaged in the business of a tenant relocator, untrustwor-
 thiness  or incompetency shall include engaging in any course of conduct
 including, but not limited to, the  interruption  or  discontinuance  of
 essential  building service, that interferes with or disturbs the peace,
 comfort, repose and quiet enjoyment of a tenant.
   § 3. This act shall take effect immediately.