Not a lawyer, but that reads as compelled speech to me. Materially misrepresenting an image would be libel, today, right?
The problem is it's all too easy to generate - you can't really do much about an individual piece of slop because there's so much of it. I think we need a way to filter this stuff, societally.
Maybe i'm just bloviating also.
Can you name any countries that you think are functioning, and what their laws are on watermarked AI images?