What AB 723 actually requires
AB 723 amends California real estate law to require disclosure of any digitally altered image used in the advertisement or promotional material for the sale of real property. The duty applies to "a real estate broker or salesperson, or person acting on their behalf" — which includes virtual staging vendors operating on behalf of a listing agent.
The two required elements
- A statement disclosing that the image has been altered, "reasonably conspicuous and located on or adjacent to the image."
- A link to a publicly accessible internet website, URL, or QR code that includes and clearly identifies the original, unaltered image.
If the ad is posted on a website you control (your brokerage site, IDX pages, your own landing page), include the unaltered original in that posting. The statute also lets you link to a public page that includes and clearly identifies the original, as long as your disclosure statement says the unaltered images can be seen at that website, URL or QR code.
What counts as "digitally altered"
AB 723 defines a digitally altered image as one altered through photo-editing software or AI to add, remove, or change elements — including fixtures, furniture, appliances, landscaping, facades, or neighboring properties visible from the property.
These are explicitly NOT digital alterations under AB 723: lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or "other common photo editing adjustments" that do not alter the representation of the property.
What AB 723 does NOT do
Three common misreadings of the statute:
- It does NOT ban AI virtual staging — it mandates disclosure plus original-image access.
- It does NOT require an on-image watermark — a textual disclosure on or adjacent to the image is sufficient under the statute itself. (Watermark obligations come from individual MLS rules, especially CRMLS Rule 11.5.2.)
- It does NOT preempt stricter MLS rules. Realtors must comply with both. Several California MLSs are stricter than the statute on watermark and parallel-image requirements.
Penalties and enforcement
AB 723 does not add a fixed fine. Instead, it folds undisclosed digital alteration into "false, misleading, or deceptive advertising" under existing California Department of Real Estate disciplinary jurisdiction (B&P §10176 / §10177). Sanctions include license suspension, revocation, and civil penalties.
On top of DRE discipline, undisclosed AI staging is independently actionable as a private cause of action under California UCL (Bus. & Prof. §17200) and CLRA (Civ. Code §1750), both of which carry attorneys-fees provisions. As of mid-2026 no published California judgment exists narrowly on AI staging, but the plaintiff-bar template is loaded.
A disclosure phrase written for AB 723 and California MLSs
A disclosure block like this one, placed on or next to every altered image, covers the statement AB 723 requires and the "true picture" duty in NAR Article 12. Check CRMLS Rule 11.5.2 for any labeling it adds:
This image has been digitally altered with generative AI virtual staging. The original, unaltered photograph is available at [URL/QR code]. Furniture and décor are not included in the sale. No structural elements, finishes, fixtures, or landscaping of the actual property have been modified in this image.
Pair it with a link or QR code to a public page that shows and clearly identifies the unaltered original, which §10140.8(a)(1) requires alongside the statement.
What SofaBrain does, and what you still do
SofaBrain can stamp a disclosure label (such as "Virtually staged — digitally altered image") on downloads and can download the original alongside the edited image. Both are settings you choose; the default download is unlabeled, so check the wording and placement against your state and MLS rules before you publish. For a California ad you also need the link or QR code to the original, which you add where the listing is published.