Billion Dollar Sellers
Billion Dollar Sellers
Kevin King
NY to fine sellers $5K for AI generated people in Amazon ads
14 minutes Posted Jun 4, 2026 at 4:16 pm.
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hursday 4th of June 2026
Summary: Kevin King breaks down New York's new synthetic performer law taking effect June 9th and what it means for any seller using AI generated humans in US ads. He also covers Amazon removing the paywall on the best part of Amazon Marketing Cloud, a cohort study showing cheap customers cost the most, an llms.txt generator tool, and fresh stats on AI search traffic to Shopify stores.
Key Points Discussed:
Amazon removed the paywall on AMC paid feature tables (including Amazon Insights) through December 31st — query the organic side of the customer journey at no cost
Third party data like Experian still costs money, but the Amazon 1P tables are now free to query
AMC now provides 25 months of cohort lookback data
New York's synthetic performer law takes effect June 9th — first US state to require disclosure when ads use AI generated humans
You can't geofence New York out of Amazon Sponsored Ads, so treat it as a national rule for US facing campaigns
A synthetic performer is any human-like figure created or heavily altered by AI to look like a real person; digital replicas of identifiable real people fall under a separate NY law
The disclosure duty sits with the ad creator (brands, agencies, freelancers) — not Amazon, TikTok, or Meta
Penalties: up to $1,000 for a first violation, up to $5,000 each after, with a 5-day cure window after written notice
Exemptions: audio-only ads, AI language translation that doesn't change appearance, and promos for films, shows, and games
In scope for Amazon: Sponsored Products, Sponsored Brands, Sponsored Display, and DSP creative featuring AI humans; off-Amazon paid media and boosted organic posts also count
A 6-step seller checklist: audit creative, map New York risk, add disclosures, update agency briefs/SOWs, build a 24–48 hour fast-fix lane, and pick a long-game model strategy
California, Texas, and Illinois are lining up their own AI advertising rules
Shopify Q1 2026 data: AI search traffic is still small, but converts 49% higher than organic and carries a 14% higher average order value
llms.txt files give AI models structured info about your store, improving accuracy and reducing hallucinations about your brand
Gabriel Caceros cohort study: customers acquired through Amazon bought 2.3x more over 18 months than TikTok-acquired customers
LTV by channel — Amazon Sponsored Brands branded defense ($312, 34.7x LTV:CAC), Amazon DSP ($204), Amazon Sponsored Products ($187), Walmart Connect ($129), TikTok Shop ($81)
Reallocation result over 90 days: revenue flat, contribution dollars up 31%, LTV per customer up 47%
Links Mentioned:
Join the Billion Dollar Sellers Club — just $9 to try it out
The AI Amazon PPC Challenge with Chris Rawlings (June 29–July 3)
Marketing Misfits episode with William DeVito on AI mindset
Quickly generate your llms.txt file here at no charge
Gabriel Caceros' cohort study on LinkedIn
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