Page 2 - Kattison Avenue - Fall 2025 - Issue 15

• New expectations around digital replicas and synthetic
Takeaways From the ANA Masters of
Advertising Law Conference performers: AI now touches every stage of advertising,
from content generation to performance analytics, and
regulators are catching up fast. For production, SAG-
2025 Conference Highlights AFTRA’s new Commercials Contract sets boundaries
between “digital replicas,” which require performer consent
and compensation, as well as “synthetic performers,”
By Jessica Kraver and Catherine O'Brien
which trigger union fund payments. Talent agreements
should track these categories and reflect where collective
bargaining obligations may preempt state law.
Katten attended the 2025 ANA Masters of Advertising Law
Conference in Chicago from November 3-5. The conference • Embracing agentic AI while managing operational risk:
highlighted how fast the advertising and consumer protection Generative and agentic AI are increasingly embedded
landscape is evolving. States are taking divergent approaches, across the campaign lifecycle to drive production efficiency,
artificial intelligence (AI) is reshaping production and compliance cost reduction and speed to market. Regulators, however,
risk, and familiar areas like subscriptions, influencer marketing are pushing for more transparency, particularly when AI
and loyalty programs remain enforcement priorities. Below are materially affects access, price or consumer choice.
the themes that shaped this year’s discussions. Federal Trade Commission (FTC)
Enforcement Priorities

FTC Commissioner Melissa Holyoak discussed where she
expects enforcement to focus in the year ahead, highlighting
three main areas of focus:
• Advertising to children and teens: Protecting minors online
remains a top priority. She reiterated the central role of the
Children’s Online Privacy Protection Act (COPPA), which
regulates services directed to children under 13 and to
general audience platforms with actual knowledge they
are collecting personal data from children. Commissioner
Holyoak also noted the FTC’s particular interest in obtaining
verifiable parental consent for collecting children’s data
AI in Advertising under COPPA.

AI now influences the full spectrum of advertising creation, • Made in USA claims: Commissioner Holyoak underscored
distribution and measurement, from creative development continued enforcement of the Made in USA Labeling Rule,
and production workflows to targeting and analytics. As these which requires that products advertised as “Made in USA”
tools become part of everyday campaign work, contracting and (without qualifiers) be “all or virtually all” made in the United
production norms need to evolve to reflect how AI actually States, including final assembly, significant processing
shapes deliverables. and components. She also noted that such enforcement
advances both consumer protection and competition
• Modernizing representations and warranties: It is often
difficult or impossible to make accurate representations objectives.
of originality in AI-assisted deliverables, so boilerplate • Pricing transparency: Commissioner Holyoak stressed the
language that assumes full ownership of outputs may not importance of clear, upfront pricing and candid presentation
hold up. Instead, tailor warranties and intellectual property of fees. While the Commission recognizes that subscription
(IP) terms to reflect how the AI tools were trained and what models and add-on services can provide consumer benefits,
third-party rights or licenses may apply. Expect narrower it will crack down on deceptive conduct, such as hiding
reps, more tailored indemnities and clearer diligence fees or making cancellation unreasonably difficult. Holyoak
expectations to replace broad, absolute assurances. emphasized that Restore Online Shoppers’ Confidence Act

2 Kattison Avenue | Fall 2025