Define "failed".

If what ends up happening is that every listing has misleading AI photos but they have to disclose it, then also what ends up happening is nobody trusts them anymore. Consumers will know by default to not trust the photos.

In my eyes, thats a win since that's a better outcome than them secretly using AI photos.

Of course in my ideal world it would be outlawed altogether, But even if they were still allowed to use AI photos but were forced to disclose it, that's still a good first step.