NSW cracks down on ‘AI-doctored’ real estate listings

The NSW government wants to stop the misleading of its 2.3 million renters by ending misleading rental advertisements created using AI.

Landlords and agents will be required to disclose when images in rental ads that have been digitally altered or AI-generated to hide imperfections, damage and proportions.

The better regulation and fair trading minister, Anoulack Chanthivong, issued a media release on Friday.

“Every renter knows the frustration of seeing a property online, only to turn up and find it looks nothing like the listing,” Chanthivong said.

“These laws are about putting an end to misleading practices and making sure renters get a fair go. We will always stand on the side of renters.”

Under the legislation, real estate agencies in NSW will face fines of up to $22,000 for failing to disclose digitally altered or AI-generated property images.

The legislation targets the rapid rise of “housefishing” – where digital alterations purposefully misrepresent a property's condition.

Under the new rules, businesses that fail to disclose altered photographs face penalties of up to $22,000.

Major reform for NSW renters

The reforms are planned to be effective from early 2027, and generally aim to reduce the risk of identity theft and data breaches and create a more consistent application process.

Under the new rules, all agents and landlords must use a standardised rental application form outlining what information is required.

Applicants will no longer be asked for details such as personal photos, social media accounts, information about their children or tattoos, with the new rules also dictating how personal information should be stored.