AI and Digital Replicas Trigger New Laws for Fashion & Beauty Sectors
New York and Texas are enacting AI-specific laws reshaping fashion and beauty sector compliance.
Why it matters: Legal professionals advising fashion and beauty brands must navigate a patchwork of new state laws and FTC guidelines regulating digital replicas, AI advertising disclosures, and rights of publicity. Noncompliance may lead to civil penalties and enforcement actions.
- The New York Fashion Workers Act, effective June 19, 2025, requires advertisers to obtain clear consent from models before using digital replicas.
- The AI Transparency in Advertising Act, effective June 9, 2026, mandates disclosure of AI-generated 'synthetic performers' in New York ads.
- The Posthumous Right of Publicity Expansion Act (Dec. 11, 2025) requires consent from heirs before using deceased individuals' likeness via AI in New York.
- The Federal Trade Commission updated Endorsement Guides in June 2023, expanding disclosure rules to include AI-generated content.
AI tools—from digital models to virtual try-on systems—are now integral to the fashion and beauty industries. But rapid adoption is triggering a wave of legal scrutiny, spurring lawmakers to act.
- The New York Fashion Workers Act is one of the first of its kind. Effective June 19, 2025, it requires advertisers to gain clear, conspicuous consent and specify the scope of use and compensation before creating and deploying digital likenesses of models.
- Starting June 9, 2026, New York’s AI Transparency in Advertising Act will require visible disclosure when synthetic performers—AI-generated virtual models—appear in ads, with penalties for noncompliance.
- The Posthumous Right of Publicity Expansion Act, effective December 11, 2025, mandates consent from executors or heirs before using deceased individuals' persona—including AI-generated likeness—for commercial purposes.
- At the federal level, the FTC’s 2023 updated Endorsement Guides expand the definition of "material connection" to include AI-generated testimonials and experiences, requiring disclosure to consumers. The FTC sent warning letters to several fashion brands in February 2025, underlining enforcement intent.
- Texas' Responsible Artificial Intelligence Governance Act (TRAIGA) restricts AI-driven biometric identification and prohibits use of AI in ways that could incite self-harm, effective January 1, 2026.
For counsel, these regulations mean drafting contracts that contemplate digital likeness rights, advertising clearances, and robust AI governance policies as legal lines—and penalties—sharpen in key states.
By the numbers:
- June 19, 2025 — New York Fashion Workers Act takes effect
- June 9, 2026 — AI Transparency in Advertising Act enforces AI disclosure
- December 11, 2025 — Posthumous Right of Publicity Expansion Act becomes law
- January 1, 2026 — Texas TRAIGA introduces AI use restrictions
Yes, but: Specific enforcement actions and operational impacts on companies are not yet documented.