What is CA AB 723?
California Assembly Bill 723 (CA AB 723), which goes into effect 1/1/2026, is a state law amendment that declares a property listing featuring significantly altered images needs to include the original, unaltered images along with a disclosure about which images are altered.
Does this affect CRMLS’s policies?
Yes. CRMLS has drafted the new Rule 11.5.2 that adheres to the definitions of digitally altered images as set forth in CA AB 723 and demands the same disclosure of unaltered images. The previous Rule 11.5.2 has been renamed Rule 11.5.3.
What are digitally altered images?
Essentially, any image in which virtual components such as furniture or appliances have been added or removed in a listing photo.
Does this include use of AI such a REimagineHome?
Yes, AI-altered images count as digitally altered images.
Does this rule apply to all edits to an image?
No. Minor photographic adjustments, such as brightness or color correction, are not affected by
this rule.
What do I need to do with my digitally altered images to stay compliant?
A digitally altered image needs to be labeled as such (“digitally altered,” “virtually staged,” etc.), and the original and unedited image must also be included next to the enhanced image in the listing.
What about surface level changes, like wall color or flooring?
In compliance with Truth in Advertising rules, users cannot add, remove, or modify any real part of a property unless that property is remodeled according to the image prior to Close. If an image is digitally altered in a way that affects the property’s real elements, it must be similarly labeled and disclosed as established above.
What happens if I don’t correctly disclose that an image is digitally altered?
The user will be contacted by Compliance to correct the issue as any user would be for any other violation.
Is there a specific fine associated with breaking this rule?
As of now, there is no fine, however the CRMLS Rules Committee will revisit the matter of fines in 2026.
What if I’m unsure if an image is digitally altered enough to be covered by this rule?
When in doubt, err on the side of caution. If a user cannot decide if an image is digitally altered, they ought to go through the disclosure process as established above.
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Source: (12/12/2025) https://kb.crmls.org/knowledgebase/californias-altered-image-law-ca-ab-723-faqs/