California AB-723 (2026)

Digital Image Disclosure – CA AB-723

(Effective 2026)

Two images of a modern house exterior with a pool are shown: one with a cloudy sky and an AI-altered version with a vibrant sunset, showcasing technology's transformative power in photography.

What Realtors Need to Know About Digitally Altered Listing Photos Transparency in real estate marketing is evolving.

Beginning January 1, 2026, California Assembly Bill AB-723 introduces new disclosure requirements for real estate listing images that are digitally altered. As virtual staging, AI tools, and advanced photo editing become more common, the goal of this law is straightforward: ensure buyers clearly understand when images have been modified.

At Sky360 Media, we believe clarity builds trust. Here’s what matters — and how we’re helping our clients stay aligned moving forward.

What Is AB-723?

AB-723 is a California law that requires disclosure when real estate marketing images are digitally altered in a way that changes the physical or visual representation of a property.

The law applies to listing images used across MLS platforms, websites, and other marketing materials created by real estate professionals or on their behalf.

You can review the official bill text directly from the California Legislature here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB723

What Is Considered a Digitally Altered Image?

Digitally altered images include edits that add, remove, or change elements of a property or its surroundings, including:

• Virtual staging (adding or re

  moving furniture)

• AI-generated or modified features

• Altered landscaping, finishes, or structures

• Sky replacement or AI-enhanced skies

• Removal or addition of permanent or visible elements

These types of edits require clear disclosure under AB-723.

What Does Not Require Disclosure?

Standard professional photography enhancements that do not misrepresent the property remain unaffected, including:

• Lighting and exposure correction

• Color and white balance adjustments

• HDR blending

• Cropping and straightening

These enhancements are part of professional real estate photography and are considered compliant under AB-723.

What the Law Requires When Images Are Altered

When digitally altered images are used, AB-723 requires:

• A clear and conspicuous disclosure indicating the image has been altered

• Access to the original, unaltered image when altered images are displayed on websites controlled by the broker or agent

The intent is transparency — not to prohibit the use of modern marketing tools.

How This Aligns With Existing MLS Standards

It’s important to note that many MLS platforms have long maintained rules around image accuracy and misrepresentation. Materially altering listing photos in a way that could mislead buyers has historically been discouraged or restricted under MLS guidelines.

What has changed is technology.

AI Virtual Staging Image.

The rapid advancement of AI-powered editing tools has made it easier than ever to alter images in ways that are subtle, realistic, and not immediately obvious. As these tools become more accessible, the potential for buyer confusion increases.

AB-723 reflects this shift. Rather than banning altered images outright, the law formalizes a disclosure-based approach, aligning state regulation with long-standing MLS principles while modernizing expectations for an AI-driven era of real estate marketing.

How Sky360 Media Is Supporting Compliance

To make compliance simple and consistent, Sky360 Media is implementing a clear delivery workflow:

• Standard Photography

  Professionally captured and color-corrected images with no digital alterations to the property. This includes enhancements such as lighting correction, color balancing, HDR blending, cropping, and straightening are included within Standard Photography and are considered compliant under AB-723.

• Digitally Altered Images

  Images that include virtual staging, sky replacement, or other disclosed edits. These images are delivered in a separate folder and include a visible “Altered” label in the bottom corner to support transparency and compliance.

This approach helps agents easily select the appropriate images for MLS, websites, and marketing materials.

Looking Ahead

AB-723 represents a natural evolution in real estate marketing — one driven by new technology and the need for clear communication with buyers. At Sky360 Media, our role is to stay aligned with industry. We look forward to continuing to support our clients and marketing as we move into 2026 and beyond.