Real Estate Advertising

Technology makes it easier than ever to improve listing photos. Virtual staging can fill an empty room with furniture, editing software can remove unwanted objects, and artificial intelligence (AI) can transform an image in seconds. But when does enhancing an advertisement cross the line into misleading advertising?

Wisconsin law already provides some important rules, and beginning January 1, 2027, licensees will have an additional disclosure obligation when technology is used to alter advertising in a way that creates a false or misleading impression of the property.

Current advertising rules

Wis. Stat. § 452.136 currently establishes several requirements for real estate advertising. Most importantly, a licensee may not advertise in a manner that is false, deceptive or misleading.

The statute also requires licensees to properly identify the firm in advertising. Except for certain advertisements involving real estate owned by the licensee, advertising must disclose the firm's licensed name or a trade name previously filed with the Wisconsin Department of Safety and Professional Services and clearly indicate that the firm is a business enterprise rather than a private party. A licensee associated with a firm generally must advertise under the firm's supervision and in the firm's name, with the firm's name being clear and conspicuous

The statute also limits when a licensee may advertise another person's property. Generally, the firm must either be the listing firm or have the listing firm's consent to advertise the property. And when advertising a property's price, a licensee may not advertise a price other than the price agreed upon with the owner, although the price may be stated as a range or in general terms if it reflects the agreed upon price.

These requirements apply regardless of the technology used to create the advertisement. In other words, even before the new law takes effect, using AI or other editing technology does not provide a licensee with an exception to the existing prohibition against false, deceptive or misleading advertising.

A new rule for technology-enhanced advertising

Effective January 1, 2027, 2025 Wisconsin Act 69 creates Wis. Stat. § 452.136(1m), addressing advertising enhanced by technology. The new provision requires a licensee to disclose in advertising when the advertising has been altered or modified using technology, including AI, to add, remove or change elements of the property in a way that creates a false or misleading impression of the property.

The new law is not limited to AI. It applies broadly to technology used to alter or modify advertising. The disclosure requirement is triggered when technology is used to add, remove or change elements of the property and the alteration creates a false or misleading impression of the property.

For example, virtually staging an empty room, digitally replacing existing flooring, removing an unsightly object from a yard or otherwise changing how the property appears could raise questions about whether the resulting advertisement creates a false or misleading impression. The specific facts and nature of the alteration will matter.

Disclosure should be part of the advertisement

The statute requires the disclosure to be made "in all advertising." Accordingly, placing a disclosure somewhere separate from the altered advertising may not accomplish the purpose of the requirement. For example, when an altered listing photo requires disclosure, a prudent practice may be to place the disclosure on or with the altered image itself rather than relying only on private MLS remarks.

Common descriptions such as "virtually staged," "digitally enhanced" or "AI-generated rendering" may help consumers understand that what they are seeing is not an unaltered representation of the property. The appropriate disclosure will depend on what was changed and how the advertisement is presented.

Technology is a tool, not an exception to the rules

The new law does not prohibit licensees from using AI, virtual staging or other technology in real estate advertising. Instead, it adds a disclosure requirement when technological alterations create a false or misleading impression of the property.

And the existing rule remains important. Licensees may not advertise in a manner that is false, deceptive or misleading in the first place.

As technology becomes increasingly sophisticated, REALTORS^® should consider not only whether an image can be enhanced, but also what impression the finished advertisement gives a prospective buyer. When technology changes what a consumer believes about the property, transparency matters.

Learn more by visiting the WRA's 2027 practice changes resource webpage.