New York State Fashion Workers Act Provisions Regulate AI Representations of a Model’s Likeness
March 21, 2025
The Fashion Workers Act, which aims to enhance protections for models and other fashion industry professionals, became effective on June 19, 2025. The Act increases regulations for model management companies and their clients, which include retailers, designers, photographers, and other entities that receive modeling services either directly from a model or through intermediaries.
Regulation of Digital Replicas: The Act importantly describes the services a model may perform to include the use of a “digital replica,” which the Act defines as a “significant, computer-generated or artificial intelligence-enhanced representation of a model’s likeness, including but not limited to, their face, body, or voice, which substantially replicates or replaces the model’s appearance or performance,” with some exclusions for minor photographic edits.
The Act prohibits model management companies from creating, altering, or manipulating a model’s digital replica using artificial intelligence without the clear, conspicuous, and separate written consent of the model. It likewise requires entities that hire models (often the clients of model management companies) to obtain prior written consent for any creation or use of a model’s digital replica, detailing the scope, purpose, rate of pay, and duration of the use.
In addition to the inclusion of AI regulations, the Act’s other key provisions include:
Mandatory Registration: New York model management companies must register with the state’s Department of Labor by June 19, 2026 and renew their registration every two years.
Fiduciary Duty: The Act imposes a fiduciary duty on model management companies, mandating them to act in the best interests of the models they represent. This includes conducting due diligence to ensure safe working conditions, actively seeking employment opportunities, and providing models with final agreements at least 24 hours before services commence.
Financial Transparency: Companies must clearly outline any expenses to be deducted from a model’s compensation and provide detailed quarterly financial reports. Additionally, any financial relationships between the management company and clients must be disclosed to the models.
Contractual Limitations: The Act restricts management contracts to a maximum of three years and limits commission fees to 20 percent of the model’s compensation, among other prohibitions.
Implications for Clients: Entities that hire models are also subject to new obligations under the Act. The included obligations involve overtime compensation, provided meals, limiting danger to models, liability insurance, explicit content, and allowing a model to be accompanied by a representative, in addition to the above-mentioned requirements concerning digital replicas.
Violations of the Fashion Workers Act can lead to civil penalties and entitle models to commence causes of action. A model management company found to be in violation of the Act can be liable for actual damages, reasonable attorneys’ fees and costs, and liquidated damages up to 100 percent of the total amount of actual damages, and up to 300 percent if it is found to have acted willfully.
As the June 2025 implementation date approaches, those in the fashion industry and other industries that purchase modeling services are encouraged to familiarize themselves with the Act’s provisions to ensure full compliance.
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