PHOTO: In a landmark move for the property sector, New South Wales (NSW) has announced sweeping new laws that target real estate advertisements. FILE
🏘️ AI Tricks in Property Ads? Not Anymore – Australia Moves to Ban Deceptive Real Estate Marketing
In a landmark move for the property sector, New South Wales (NSW) has announced sweeping new laws that target real estate advertisements using AI-enhanced or digitally altered images to mislead prospective renters — a practice that’s quietly exploded across the market in recent years.
The reforms will require real estate agents to disclose any manipulated or AI-generated images in listings — with significant fines for those who fail to comply.
With one in three NSW residents renting, the move is being applauded by tenants’ advocacy groups, who say it’s long overdue.
📸 Fake Photos, Misleading Layouts, Hidden Damage
Examples cited by the NSW Government include AI-generated staging showing a double bed in a bedroom that could realistically only fit a single, digitally enhanced lawn colours, and edited-out property damage like mould or water stains.
Under the proposed legislation:
-
Agents must disclose if images have been digitally altered
-
Non-disclosure fines: up to $22,000 for businesses, and $5,500 for individuals
-
Corporations could face penalties of $49,500 for violating privacy regulations related to renters’ data
🧠 AI + Real Estate = A Legal Minefield
The CEO of the Tenants’ Union of NSW, Leo Patterson Ross, said the rise of AI in real estate has become a “growing frustration” for renters:
“Being misled into visiting a property that is not suitable is frustrating for prospective tenants. But it also inflates rental interest artificially, increasing the pressure on applicants to bid higher than advertised.”
Ross says AI has taken property image manipulation to the next level, turning “uninhabitable rooms into Pinterest-worthy living spaces” — all without disclosure.
🛡️ A Push for Privacy: Standardising What Data Landlords Can Collect
This reform also addresses how much personal data landlords and agents are allowed to collect. Currently, it’s estimated that 187,000 pieces of identification data are collected from renters in NSW every week — from selfies and social media handles to disclosing tattoos.
The new bill aims to introduce a standard rental application form, making it clear what can and cannot be requested. It also ensures that:
-
Data must be deleted when no longer needed
-
Renters cannot be forced to “trade away their privacy” just to get a roof over their heads
🏡 Could New Zealand Be Next?
While the law applies to Australia, real estate professionals in New Zealand should be watching closely. The Unsolicited Electronic Messages Act 2007 (NZ) and the NZ Privacy Act already prohibit deceptive marketing and data misuse — but there are no current laws requiring disclosure of AI-edited photos in property ads.
Given the growing trend, it may only be a matter of time before similar regulations arrive here.
📊 Real Estate Advertising Under the Microscope
Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, says these reforms are common sense:
“Renters are entitled to dignity and privacy — and that extends to the way their data is handled and how properties are advertised.”
Real estate groups agree — to a point. Tim McKibbin, CEO of the Real Estate Institute of NSW, acknowledged the need for data minimisation and truth in advertising, but cautioned that some personal data collection is still necessary for tenancy verification.
🔎 What Landlords Could Soon Be Forced to Disclose
Leo Patterson Ross has also suggested more transparency be built into the listing process, including:
-
📆 The age of listing photos
-
🛠️ Repair and maintenance history
-
♻️ Energy efficiency ratings
-
📐 Detailed floorplans
-
🔍 Past compliance issues
In a rapidly digitising industry, transparency and trust are becoming the new currency.
🧨 Final Word: Real Estate in the Age of AI Needs Guardrails
The crackdown by NSW is not just about fake photos — it’s about restoring integrity to the rental process, safeguarding tenant rights, and ensuring fair competition in an increasingly tech-driven property landscape.
SOURCE: THE GURADIAN