Legalities of Editing Inventory Photos?

[Brian Michael West]

Hey everyone!


I’ve been seeing a growing trend lately of dealerships using AI to enhance or even generate their inventory photos. From virtual background replacements to lighting adjustments and even touchups that remove blemishes, AI is making it easier than ever to present a “clean” look online.


That got me thinking about the potential gray area here. At what point does enhancement cross into misrepresentation? We all know that transparency is key to maintaining trust with customers and avoiding potential legal headaches. But if AI is subtly concealing minor damage, wear, or imperfections, could that be interpreted as misleading advertising?


I’m curious if anyone has looked into the legal side of this or has compliance guidance from their OEM or dealer group. Are there best practices being discussed to balance digital presentation quality with accuracy? Or am I overthinking it?


Would love to hear how others are handling AI-enhanced imagery in their stores.

The image below is an exaggeration, obviously.

 

[Andrew Hobdy]

I am a regional sales manager from CarCutter and we are one of the oldest in this space. I can only tell you from my experience, it's in our terms and conditions that we do not touch the car ever. Our AI backgrounds only cover the backgrounds. While we have things to reduce glare etc., we strive to "make the car the star" in whatever condition it is in. We have no software whatever to cover up any imperfections in the car, our goal is to present the unit in the best way it can be presented, whatever condition it's in. Again, I cannot speak for all the companies in this space, only mine. Coming from the dealership world, that is part of what attracted to me to this company is their strive for transparency and the trust it builds.

 

[BillVaughnAlWestNissan]

I guess I don't see how improving lighting changes the charge. That doesn't seem possible to me.

 

[Brian Michael West]

I guess I don't see how improving lighting changes the charge. That doesn't seem possible to me.

I'm asking more about editing out damage, rust, etc.

 

[Tallcool1]

Well based upon the current state of the Retail Auto Industry, I would say that it's a stretch to even think that editing out damage on a photo would be considered "illegal" unless you are in one of the states that seems to overregulate car dealers.

We can advertise a price that isn't within 25% of what it actually takes to purchase our cars. I doubt anyone is going to squeal too loud about a little photo shopping. It is sort of the wild west, you can do pretty much anything you want.

The ethical part of it typically bothers me much more than the legal part.

 

[CarData Support]

I haven’t seen this happen @ Franchise stores. What dealer wants to deal with the headaches that possibly comes with? I guess there may be some but I haven’t come across any.

 

[Carphotoeditor]

Hey everyone!


I’ve been seeing a growing trend lately of dealerships using AI to enhance or even generate their inventory photos. From virtual background replacements to lighting adjustments and even touchups that remove blemishes, AI is making it easier than ever to present a “clean” look online.


That got me thinking about the potential gray area here. At what point does enhancement cross into misrepresentation? We all know that transparency is key to maintaining trust with customers and avoiding potential legal headaches. But if AI is subtly concealing minor damage, wear, or imperfections, could that be interpreted as misleading advertising?


I’m curious if anyone has looked into the legal side of this or has compliance guidance from their OEM or dealer group. Are there best practices being discussed to balance digital presentation quality with accuracy? Or am I overthinking it?


Would love to hear how others are handling AI-enhanced imagery in their stores.

The image below is an exaggeration, obviously.

View attachment 9640

That’s a really thoughtful question — and one that’s becoming increasingly relevant. AI tools can absolutely help present inventory more professionally, but there’s definitely a fine line between enhancement and alteration. Once edits start concealing actual condition details, you’re stepping into potential misrepresentation territory.


Some dealer groups are starting to set internal policies: using AI only for background cleanup, lighting balance, or color correction — never for removing dents, scratches, or other physical flaws. Clear disclosure is also key if enhancements go beyond basic retouching.


You’re not overthinking it at all — the industry really needs consistent guidelines here to protect both trust and compliance.

 

[Carphotoeditor]

I guess I don't see how improving lighting changes the charge. That doesn't seem possible to me.

That’s fair — improving lighting alone doesn’t really change the substance of what’s being shown. It’s more about presentation than alteration. The concern usually comes in when edits start masking flaws or altering the vehicle’s actual appearance. But simple lighting and color balance adjustments are generally seen as acceptable — they just help the photo look more true to life, not misleading.

 

[Carphotoeditor]

I am a regional sales manager from CarCutter and we are one of the oldest in this space. I can only tell you from my experience, it's in our terms and conditions that we do not touch the car ever. Our AI backgrounds only cover the backgrounds. While we have things to reduce glare etc., we strive to "make the car the star" in whatever condition it is in. We have no software whatever to cover up any imperfections in the car, our goal is to present the unit in the best way it can be presented, whatever condition it's in. Again, I cannot speak for all the companies in this space, only mine. Coming from the dealership world, that is part of what attracted to me to this company is their strive for transparency and the trust it builds.

That’s a solid stance, and honestly, the right one to take. Transparency builds long-term credibility, and it’s good to see companies like CarCutter drawing that line clearly. AI should enhance presentation, not distort reality — and focusing only on backgrounds and lighting while keeping the car untouched shows integrity. Dealers and customers both win when trust stays at the center of the process. See attachment.

 

[Tallcool1]

I haven’t seen this happen @ Franchise stores. What dealer wants to deal with the headaches that possibly comes with? I guess there may be some but I haven’t come across any.

How do you know? How can you look at a Franchise store website and know that this isn't happening?