Minnesota passes ban on fake AI nudes; app makers risk $500K fines

Minnesota passed a law making it illegal to create or distribute fake AI nudes, fining app developers up to $500,000 per violation, the strictest state regulation yet. The legislation targets tools with over 10,000 users, requiring mandatory content labelling and takedown protocols within 24 hours. This penalty is 200% higher than the average state fine for similar digital abuse, surpassing even California's 2024 AI protections.