During a recent meeting of the Senate Standing Committee on Consumer Protection, significant concerns were raised regarding the implications of new advertising regulations on local broadcasters and businesses in New York. The discussions centered around the potential burdens these regulations could impose, particularly in light of the increasing use of artificial intelligence (AI) in advertising.

One of the primary issues highlighted was the requirement for local broadcasters to ensure that advertisements comply with new labeling standards. Committee members expressed apprehension about the feasibility of reviewing every advertisement to confirm proper labeling, which could place a heavy burden on local stations that rely on a high volume of advertisements each week. The committee acknowledged that while the responsibility for compliance could be shifted to advertisers, the impact on local media outlets still needed careful consideration.

Another critical point of discussion was the distinction between local broadcasters and larger digital platforms, particularly in relation to Section 230 of the Communications Decency Act. This law provides immunity to online platforms from liability for user-generated content, which raises questions about whether similar protections would apply to AI-generated advertisements. Committee members sought clarity on whether big tech companies would be exempt from the new disclosure requirements, emphasizing the need for equitable regulations that do not disproportionately affect smaller, local entities.

The committee also recognized the importance of ensuring that consumers are not misled by AI-driven advertisements that impersonate human beings. While the intent behind the regulations is to protect consumers from deception, there is a growing concern that overly stringent rules could inadvertently stifle local broadcasters and newspapers, which play a vital role in community information dissemination.

As the committee deliberates on these issues, there is a clear call for further examination of the proposed regulations to balance consumer protection with the operational realities of local media. The discussions underscore the need for a thoughtful approach that considers the unique challenges faced by local broadcasters in an evolving advertising landscape. The committee plans to continue its review of the bill, aiming to refine it to avoid unintended consequences while still addressing the critical issue of consumer deception in advertising.