Effective January 1, 2026, California Assembly Bill 723 introduces new disclosure rules for real estate professionals who use digitally altered images in advertising, marketing, or online listings. The new law requires that a clear disclosure be present on or near the image stating that it has been digitally altered. It is also required to provide access to the original, unaltered version of the image when made publicly accessible.

Why This Matters
AB 723 adds Section 10140.8 to the California Business & Professions Code. It applies to licensed real estate brokers and salespersons and those acting on their behalf.

What Counts as a “Digitally Altered Image”?
According to the recently revised C.A.R. Model MLS Rules:
“Digitally altered image” means 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. “Digitally altered image” does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.

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