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New Law AB 723 – Disclosure Required for Digitally Altered Property Images & FAQ

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Effective January 1, 2026, California Assembly Bill 723 requires real estate professionals to clearly disclose when images used in advertising or listings have been digitally altered and to provide access to the original, unaltered images when those altered images are made public.

Two new sections will be added to the CCAR MLS Rules and Regulations Effective Jan. 1. 2026

  • 11.5.1 Definition of Digitally Altered Images – Defines digitally altered images as provided under California law.
  • 11.5.2 Digitally Altered Images – Explains how digitally altered images must be treated when inputted in the MLS.

How Does this Affect Photograph Requirements in the MLS?
To support compliance with California’s new law regarding digitally altered property images (AB 723), CCAR will be implementing a standardized approach within the MLS.

Going forward, when a digitally altered image is used in a listing:

  • The digitally altered image must be displayed first,
  • The original, unaltered image must immediately follow, and
  • The altered image must include a photo label clearly disclosing that the image has been digitally altered.

To add a photo label within the MLS, please follow the instructions below:

  • Go to ‘Maintain Listing’;
  • Go to the ‘Add/Edit Pictures’ module;
  • Add listing photos and select ‘Add Label’ for the digitally altered images;
  • Type into the ‘Label’ field that the photo is digitally altered (i.e. “altered,” “digitally altered,” “AI altered,” or some accurate substantially similar term).

This approach allows the MLS to clearly present both versions of the image while maintaining transparency for consumers and consistency for Participants and Subscribers.

FREQUENTLY ASKED QUESTIONS

Q: What is a digitally altered image?
A: As a threshold matter, it is important to understand what is considered a digitally altered image under the new law. AB 723 defines “digitally altered image” as:

  • an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf
  • that has been altered through the use of photo editing software or artificial intelligence
  • to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, façade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties.

While AB 723’s definition of “digitally altered image” seems to mostly target items that are part of the property (e.g., fixtures) or features of the property (e.g., views through windows), real estate licensees should take note that the definition also includes furniture. This means that if a real estate licensee uses virtual staging to add, remove, or change furniture in the property, they will need to disclose that the images have been digitally altered.

Q: How do I disclose digitally altered images in the MLS?
A:

  • Go to ‘Maintain Listing’;
  • Go to the ‘Add/Edit Pictures’ module;
  • Add listing photos and select ‘Add Label’ for the digitally altered images;
  • Type into the ‘Label’ field that the photo is digitally altered (i.e. “altered,” “digitally altered,” “AI altered,” or some accurate substantially similar term).

Q: Do I need to upload both edited and unedited versions of a photo?
A: Yes. Ensure that the original, unaltered version is displayed immediately after the digitally altered image.

Q: Does this apply to listings entered before January 1, 2026?
A: Participants and Subscribers are encouraged to review current listings in the Active, Pending, and Hold statuses and make add necessary photo labels to disclose digitally altered images.

Q: What is NOT a digitally altered image?
A: Specifically excluded from the definition of “digitally altered images” are images “where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that the not change the representation of the real property.”

Q: Does AB 723 apply to leases?
A: Yes, but only if the lease exceeds one year’s duration.

Q: Is virtual staging allowed?
A: Yes. Virtual staging is allowed, but virtually staged photos must be clearly labeled, and the unedited version must immediately follow each virtually staged photo.

Q: Who is responsible for compliance, the agent or the photographer?
A: The listing agent and broker are responsible for ensuring all listing content complies with MLS rules, regardless of who created or edited the photos.