Andrew Lustigman, Chair of Olshan's Advertising, Marketing & Promotions Group and Co-Chair of the firm’s Brand Management & Protection Group, published an article in The Recorder entitled “When Artificial Performers Enter Advertising, Disclosure Laws Follow.” In the article, Andy examines emerging state disclosure rules for AI generated performers in advertising and explains how advertisers can prepare for distinct requirements across New York, California and Pennsylvania.
E-commerce businesses received welcome news on September 30, 2026 when Governor Gavin Newsom signed Senate Bill 690, a pro-business measure aimed at curbing the recent epidemic of lawsuits and demand letters brought under the California Invasion of Privacy Act (CIPA). Based on CIPA’s anti-surveillance wording dating back to the 1970s, plaintiffs had been using the statute to target e-commerce websites for using common website tracking technologies.
Over the last few years, the rapid expansion in the way that artificial intelligence has been used has opened a world of creative possibilities. In the area of advertising, recent legislation is attempting to play catch-up, presenting advertisers with legal limitations on the use of the latest technologies.
On October 13, 2025, California Governor Gavin Newsom signed into law the nation’s first statute aimed at regulating “companion chatbots,” which are AI systems that simulate human-like relationships with their users. The new law, which has been added to California’s Business & Professions Code, sets out disclosure, safety, and reporting requirements. Users who suffer harm from a violation of this law now have a private right of action that allows them to seek at least $1,000 per violation plus attorney’s fees. The law will take effect on January 1, 2026.
On the heels of California’s “Hidden Fees Statute,” Minnesota has enacted its own price transparency law. Under the new Minnesota law, any business must disclose all mandatory fees or surcharges any time that that business advertises, displays or offers a price for goods or services.
Without waiting for new federal laws or federal regulators to take action against drip pricing, California is once again leading the way by enacting “Hidden Fee Statute” SB 478, which prohibits businesses from advertising or listing a price for a good or service that does not include all required fees or charges other than certain taxes (such as sales tax) and shipping costs. While this law applies to California sales, given the borderless nature of ecommerce, the mandatory pricing disclosure law will likely impact many businesses, particularly those that use the internet for sales.
On July 1, 2022, California Assembly Bill 390 will take effect, adding new notice and cancellation requirements to California’s existing Automatic Renewal Law (“ARL”).
The client alert addresses how New York has now joined other states with some of the most burdensome automatic renewal laws, enacting a sweeping law that regulates automatic renewal disclosures and cancellation procedures.
Advertising, Marketing & Promotions practice chair Andrew Lustigman, Intellectual Property/Privacy partner Mary Grieco, AMP partner Scott Shaffer, and associate Morgan Spina authored four Guidance Notes on direct marketing in California recently published in the prestigious OneTrust DataGuidance (subscription required). The first, entitled “California – Emarketing,” covers both the state and federal legislation, as well as regulatory guidance from the Federal Trade Commission, concerning emarketing. In the second, “California – Telemarketing,” the authors examine the numerous pieces of state and federal legislation governing telemarketing, including the “Automatic Dialing Law” and the “Unwanted Calls Law.” The third, entitled “California – SMS/MMS Marketing,” discusses various state and federal laws on SMS/MMS, including the Telephone Consumer Protection Act, and the consent requirements that advertisers must follow when using these services. In the fourth, “California – Postal Marketing,” the authors explore various state and federal laws on postal marketing, such as California’s “Mail Solicitation Law” and the federal “Deceptive Mail Act.”