Not legal advice. Rules differ by state, MLS and brokerage, and they change. Ask your broker or an attorney before relying on this.
California: AB 723
California's AB 723 (Chapter 497, Statutes of 2025) added Section 10140.8 to the Business and Professions Code, and as a non-urgency 2025 statute it applies from January 1, 2026. Its text says:
- Who: a broker or salesperson, or a person acting on their behalf, who uses a digitally altered image in advertising or promotional material for a sale.
- What counts: images altered with photo software or AI to add, remove or change elements, including furniture, fixtures, flooring, paint color, landscape, floor plans, and things like utility poles, window views and neighboring properties. So virtual staging counts.
- What is required: a reasonably conspicuous statement on or next to the image saying it was altered, plus a link, URL or QR code to the clearly identified original.
- On a site you control: include the unaltered version in the posting, or link to it.
- Not covered: only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure or similar common adjustments that do not change how the property is represented.
Everywhere: Do Not Misrepresent
For REALTORS®, Article 12 of the Code of Ethics requires a true picture in advertising. State license law and consumer protection law generally prohibit misleading ads too, even with no staging rule on the books. Your MLS may also have specific rules on labels and on which photo must come first.
Staging Versus Altering the Home
- Lower risk, still label: adding movable furniture and decor to an empty room.
- Higher risk: changing floors, walls, fixtures or the view, or showing a renovation as if it exists.
- Avoid: removing damage, cracks or stains. California names utility poles and neighboring properties among covered changes, so at minimum those need disclosure there.
A Safe Routine
- Keep every original file, and host it where a link or QR code can reach it.
- Put a visible "Virtually staged" label on or next to the image, with the link to the original, and mention it in the remarks.
- Show the empty version beside the staged one in your gallery.
- Tell buyers at showings that the home is unfurnished.
- Check your MLS rules before upload.
Compare virtual staging tools and their prices.
Common Questions
Does Brightness Correction Count as Altering a Photo?
Under California's law, lighting, color correction, cropping and similar adjustments that do not change how the property is represented are excluded. Other states and MLSs may define it differently, so label when in doubt.
Can I Remove a Crack or Power Line with AI?
We advise against it. Hiding a condition buyers would care about can be misrepresentation, whatever the tool.
Last updated November 6, 2026. Source: Text of California AB 723 (Business & Professions Code § 10140.8); NAR Code of Ethics Article 12.