S 9584 NY

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Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S09584 Summary: BILL NO S09584 &nbsp SAME AS SAME AS A11403

&nbsp SPONSOR MAY &nbsp COSPNSR &nbsp MLTSPNSR &nbsp Add §349-i, Gen Bus L; amd §441-c, RP L &nbsp Designates materially misleading digital representations in real estate listings as an unfair, deceptive or abusive act or false advertising; provides that a licensed real estate broker or salesperson shall be subject to suspension or revocation of their license for a violation of such provisions.

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STATE OF NEW YORK ________________________________________________________________________

9584

IN SENATE

March 26, 2026 ___________

Introduced by Sen. MAY -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer 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:

1 Section 1. The general business law is amended by adding a new section 2 349-i to read as follows: 3 § 349-i. Digital representations in real estate listings. 1. For the 4 purposes of this section, the following terms shall have the following 5 meanings: 6 (a) "Digital representation" means any image, video, or interactive or 7 immersive media used to advertise or market real property, including 8 virtual tours. 9 (b) "Virtual tour" means any interactive, panoramic, or simulated 10 walkthrough that represents the layout or spatial relationships of real 11 property. 12 (c) "Material alteration" means a modification that would affect a 13 reasonable consumer's understanding of real property's condition, 14 features, or layout. 15 2. It shall constitute an unfair, deceptive or abusive act under 16 section three hundred forty-nine of this article and false advertising 17 under section three hundred fifty of this article to use or publish a 18 digital representation of real property containing material alterations 19 that materially misrepresent, or materially interfere with, a reasonable 20 consumer's understanding of: 21 (a) the condition of the property; 22 (b) the existence of physical features or improvements; or 23 (c) the layout, dimensions, or spatial relationships of the property. 24 3. (a) Any digital representation that has been materially altered 25 shall include a clear and conspicuous disclosure that such material 26 alterations are present. 27 (b) Where virtual staging is used, a digital representation shall 28 disclose that furnishings or finishes were digitally added.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15359-01-6

S. 9584 2

1 (c) No digital alteration shall add non-existent physical features or 2 remove or conceal known material defects in real property without clear 3 and conspicuous disclosure. 4 4. (a) A virtual tour shall not materially misrepresent, or materially 5 interfere with a reasonable consumer's understanding of the layout, 6 dimensions, or spatial relationships of a real property. 7 (b) A virtual tour that includes digitally generated, reconstructed, 8 or conceptual elements that do not depict real property as it actually 9 exists shall be clearly and conspicuously labeled as a conceptual or 10 AI-generated representation. 11 (c) No virtual tour shall depict spaces, features, or configurations 12 that do not exist, except where clearly and conspicuously disclosed. 13 5. The use or publication of a digital representation that is in 14 violation of subdivision two, three or four of this section by a 15 licensed real estate broker or salesperson shall constitute untrustwor- 16 thiness or incompetency under paragraph (a) of subdivision one of 17 section four hundred forty-one-c of the real property law, and the 18 department of state shall be authorized to revoke the license of such 19 real estate broker or salesperson, suspend such license, or impose a 20 fine in accordance with such section for such violation. 21 6. The attorney general shall be authorized to enforce the provisions 22 of this section as provided under this article. 23 7. The department of state may issue guidance or promulgate rules or 24 regulations to implement the provisions of this section, including stan- 25 dards for disclosures and examples of permissible and impermissible 26 practices. 27 8. (a) Nothing in this section shall be construed to prohibit visual 28 enhancements that do not materially affect a reasonable consumer's 29 understanding of a real property's condition, features, or layout. 30 (b) Nothing in this section shall be construed to prohibit the use of 31 digital representations depicting proposed remodeling, reconstruction, 32 or new construction that does not yet exist, provided that such digital 33 representations are clearly and conspicuously labeled as conceptual or 34 proposed and not depicting the real property as it currently exists, and 35 are not presented in a manner likely to mislead a reasonable consumer. 36 § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop- 37 erty law, as amended by chapter 529 of the laws of 2022, is amended to 38 read as follows: 39 (a) The department of state may revoke the license of a real estate 40 broker or salesperson or suspend the same, for such period as the 41 department may deem proper, or in lieu thereof may impose a fine not 42 exceeding two thousand dollars payable to the department of state, 43 provided that fifty percent of all moneys received by the department of 44 state for such fines shall be payable to the anti-discrimination in 45 housing fund established pursuant to section eighty-a of the state 46 finance law, or a reprimand upon conviction of the licensee of a 47 violation of any provision of this article, or for a violation of subdi- 48 vision four of section four hundred forty-two-h of this article, or for 49 a material misstatement in the application for such license, or if such 50 licensee has been guilty of fraud or fraudulent practices, or for 51 dishonest or misleading advertising, or has demonstrated untrustworthi- 52 ness or incompetency to act as a real estate broker or salesperson 53 including as provided under subdivision five of section three hundred 54 forty-nine-i of the general business law , or for a violation of article 55 fifteen of the executive law committed in their capacity as a real 56 estate broker or salesperson, as the case may be. In the case of a real

S. 9584 3

1 estate broker engaged in the business of a tenant relocator, untrustwor- 2 thiness or incompetency shall include engaging in any course of conduct 3 including, but not limited to, the interruption or discontinuance of 4 essential building service, that interferes with or disturbs the peace, 5 comfort, repose and quiet enjoyment of a tenant. 6 § 3. This act shall take effect immediately.

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