LOCAL SERVICES ADS HAS NEW REQUIREMENTS, AND AN AI IMAGE RULE.
Google rewrote the rulebook for Local Services Ads this summer and gave it a new name. Most of it will look familiar, but it now sits next to a new photo rule: from August 2, 2026, no AI-generated or AI-edited images for advertisers in the EU or New York state. Here is what changed and the rules that most often get home service pros in trouble.
AT A GLANCE
By Conqueror Capital · Published
The change: On June 5, 2026, Google announced that the Local Services platform policies would be updated and renamed "Local Services Ads requirements"; a July 8, 2026 update set the date as July 31, 2026.1
WHAT CHANGED
On June 5, 2026, Google posted that it would update the Local Services platform policies to update terminology, enhance readability and remove policies that no longer apply to Local Services advertisers. It also said it was renaming them "Local Services Ads requirements".1
The first notice gave July 6, 2026 as the date. A July 8, 2026 update on the same page says the policies will be updated on July 31, 2026.1 Google says the update builds on the recent change to Local Services Ads Google Guarantee badges and aligns the policies with the new badge system.1
That badge change replaced the old badges with a single Google Verified badge. Existing advertisers who completed verification earned it automatically, and Google discontinued the Money Back Guarantee tied to the Google Guarantee badge.3 If your website, trucks or quotes still promise customers a "Google Guarantee", update them.
THE AI IMAGE RULE
The requirements page now says that starting August 2, 2026, Local Services Ads does not allow AI-edited or AI-generated images in the European Union region and in New York state. By uploading images, you attest that you understand this policy and will not upload AI-edited or AI-generated images.2
Note the word "edited". A real job photo run through an AI tool to swap the sky or remove clutter is covered, not just images made from scratch. Google's page does not define where ordinary editing ends and AI editing begins, so if you advertise in those regions the safe choice is plain, lightly corrected photos of your real work.
The page says these photo guidelines don't apply if you advertise through a partner affiliate.2
THE OTHER PHOTO RULES
Business photos must be JPEG, PNG, BMP or ICO, at least 640 x 640, and no more than 10 MB, with a maximum of 100 images per account. Photos are reviewed before they show. The page lists what is not allowed:2
- images unrelated to your business or service
- another business's watermark
- phone numbers anywhere in the image, including on vehicles, uniforms or storefronts
- email addresses or street addresses
- out-of-focus, badly lit or screenshot images, and duplicates
The phone number rule is the one that catches trades: a photo of your wrapped van with the number on the side is not allowed. Google also notes it is deprecating some of these photo restrictions and will send communications before changes take effect.2
THE RULES THAT MATTER MOST
The requirements say they apply to your employees, contractors and other workers who provide services on your behalf, and that you are responsible for their compliance. Agencies managing accounts must share the policies with the advertiser.2 Highlights:
- Pricing. No low estimates followed by unusually high charges. Diagnostic charges and trip fees must be disclosed, and customers told they pay them regardless of further work. No raising the price on arrival unless the scope is significantly different.2
- Misleading representation. No false information about licenses, insurance, service areas or prices. If your license is geographically restricted, don't advertise outside that area, and only accept work you are licensed, insured and able to complete.2
- Lead selling. Leads must be fulfilled by you or your vetted technicians. Passing or selling leads to another business, or advertising for call centers that reroute requests, is not allowed.2
- Monetization abuse. No listing a phone number as your business name, diverting customers to another number to avoid paying for a lead, or trying to get credits for valid leads.2
- Circumventing systems. No duplicate accounts for more traffic, and no new accounts after a suspension.2
Google says several violations, or one serious one, can suspend the account, stop all its ads and permanently suspend related accounts.2
WHAT TO DO NOW
- Audit your photos. Remove any with phone numbers, addresses or another company's watermark. If you advertise in New York or the EU, remove anything AI-generated or AI-edited.
- Write down your fees. Make sure whoever answers the phone discloses trip and diagnostic fees every time.
- Check your service areas against where your license actually lets you work.
- Brief your subcontractors. Their conduct counts as yours under these requirements.
- Remove old "Google Guarantee" promises from your site and quotes.
- Get ready for the migration. Local Services Ads are moving into Google Ads as Performance Max campaigns with pay-per-lead goals.4 See our migration post and our Local Services Ads guide.
If you would rather have someone run these checks and manage the account, that is part of our Google Ads management.
SOURCES
- Google Advertising Policies Help, Local Services Ads policy update (June 2026), posted June 5, 2026; updated July 8, 2026.
- Google Advertising Policies Help, Local Services Ads requirements.
- Local Services Help, About Google Verified badge.
- Google Ads Help, Local Services Ads transition to Performance Max campaigns with pay-per-lead goals.
Platforms change often. Check the sources for the current version before acting.
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