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.

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).

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