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Landlords and agents could soon be required to disclose AI-doctored and digitally altered images in NSW rental ads. REB reached out to NSW Fair Trading for the latest information.
Proposed reforms to crack down on digitally altered images in NSW rental property ads could come into effect next year, with debate over a new bill to get underway.
The changes are part of the Residential Tenancies Amendment (Protection of Personal Information) Bill 2025, which also seeks to protect renters from excessive data collection.
A spokesperson from NSW Fair Trading confirmed the bill will be debated in Parliament within the coming weeks, after being introduced last month.
“Under the proposed changes, landlords and agents will be required to disclose when advertising images have been digitally altered in a way that could mislead or deceive prospective tenants,” the spokesperson said.
If passed, the changes would be rolled out next year following the development of supporting regulations.
According to Fair Trading, the reforms target deceptive practices that affect a renter’s ability to make informed decisions, especially if they cannot examine the property in person.
Modifications that would need to be disclosed include those that “obscure property damage, misrepresent room sizes, or remove undesirable infrastructure from view”.
However, basic editing, including cropping and brightening, is unlikely to be included in the disclosure requirements.
To prevent confusion about what constitutes misleading or deceptive image alteration, the bill allows for a guide to be issued to provide clarification.
Penalties for non-compliance would be up to $5,500 for individuals and $22,000 for corporations.
The suggested changes come after a report earlier in the year revealed AI and automation are becoming increasingly popular among Australian agencies.
Reapit’s State of the Australian Real Estate Market report revealed 49.1 per cent of agencies use AI technologies to automate everyday communications, such as responding to client enquiries.
The survey conducted among 147 agencies found AI-driven engagement platforms are frequently being used to track interactions, schedule viewings for properties, and send follow-up emails to clients.
Additionally, the bill includes proposed reforms to respond to growing concerns about how much personal information landlords ask renters to provide during the application process.
“It’s not uncommon for applicants to be asked for photos or social media profiles well before they’ve been shortlisted,” the spokesperson said.
To reduce unnecessary data collection, the bill calls for a standard rental application form and limits identity verification to the preferred applicant.
“These changes will complement existing federal privacy laws and align with commitments made at national cabinet to better safeguard renters’ personal information,” Fair Trading concluded.
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