California AB 723: Virtual Staging Disclosure Law Explained
California is the first state with a statute specifically regulating virtually staged and digitally altered listing photos. AB 723, effective January 1, 2026, amends the Business and Professions Code to require real estate licensees to disclose when marketing images of a property have been digitally altered — and to make the original, unaltered images reasonably available. Virtual staging remains fully legal in California; it just has to be disclosed properly.
The Law
- Name:
- Assembly Bill 723 (AB 723)
- Citation:
- Cal. Business & Professions Code § 10140.8 (as amended)
- Effective:
- January 1, 2026
- AB 723 requires that when listing photos have been digitally altered (including AI virtual staging, object removal, or other edits that change how the property appears), the marketing must clearly and conspicuously disclose the alteration, and the unaltered original images must be made reasonably accessible — for example via a link or QR code in the listing.
Disclosure Requirements in California
- ✓Clearly and conspicuously disclose that an image has been digitally altered (e.g. a "Virtually Staged" label on the photo and in the caption).
- ✓Make the original, unaltered photos reasonably available to consumers — a public link or QR code on the listing satisfies this.
- ✓Apply disclosure to every altered image, not just the first photo in the listing.
- ✓Do not digitally alter the physical condition of the property (removing damage, changing finishes, hiding defects) — that remains misrepresentation regardless of disclosure.
- ✓Follow your MLS rules, which may impose additional labeling requirements on top of AB 723.
Penalties for Non-Compliance
Non-compliance can expose licensees to discipline by the California Department of Real Estate under the Business and Professions Code (citations, fines, license suspension or revocation in serious cases), MLS sanctions, and civil liability to buyers who relied on deceptive images.
Frequently Asked Questions
What does AB 723 require, in one sentence?
If a California listing photo has been digitally altered — including AI virtual staging — you must clearly disclose the alteration and make the original, unaltered photo reasonably available to consumers.
When does AB 723 take effect?
January 1, 2026. Listings marketed from that date forward must comply.
Does AB 723 ban virtual staging in California?
No. Virtual staging remains fully legal. AB 723 only regulates disclosure: label altered images and provide access to the originals.
How do I give buyers access to the original photos?
A public web page linked from your listing (or a QR code on flyers) showing the unaltered originals satisfies the "reasonably available" requirement. StagePro generates this page automatically for every project — one click creates a public originals page with a QR code.
Does AB 723 apply to twilight edits, sky replacement, or decluttering?
AB 723 covers digital alterations that change how the property appears. Conservative practice is to disclose any material edit — virtual staging, object/furniture removal, renovations, and similar changes. Routine color correction is generally not treated as a material alteration, but when in doubt, disclose.
What is the penalty for violating AB 723?
Violations can be disciplined by the California DRE like other advertising/misrepresentation violations — citations and fines up to license suspension or revocation — plus possible MLS sanctions and civil exposure.
Sources
Stay compliant automatically
StagePro adds "Virtually Staged" labels to every image, generates a public disclosure page with your original photos and a QR code, and exports paired original+staged photos for MLS upload — AB 723 compliance built in.
Stage photos compliantly