Artificial Intelligence

Retailers Push EU to Exempt AI Ads From Labeling Rules

Should AI labels apply to every retail ad or only to genuinely deceptive content?

Published JUN 19

Retailers Push EU to Exempt AI Ads From Labeling Rules

Story

Above: EU flags fly at the entrance to the European Commission in Brussels, Belgium on June 18. Image credit: Michael Kappeler/picture alliance/Getty Images

The Facts

Eurocommerce, whose members include Amazon, H&M, Inditex and IKEA, has written to EU tech chief Henna Virkkunen requesting that AI-generated advertisements be exempted from labeling requirements under the EU AI Act, which takes effect on Aug. 2.
NewsBytes
Reuters
The EU AI Act's Article 50 requires companies to disclose when images, audio or video have been artificially generated or manipulated, with non-compliance carrying fines of up to 15 million euros ($17.2 million) or 3% of global annual turnover, whichever is higher.
IOL
TNW
Eurocommerce Director General Christel Delberghe argued the rules should not cover AI-generated ads "not intended to mislead users," citing examples such as generating a living room image to display a sofa. Retailer Zalando said AI has cut its content production costs by 90%.
Slaughter and May
Let's Data Science
The European Commission published its Code of Practice on transparency of AI-generated content on June 10, providing voluntary guidance for developers and deployers of generative AI systems ahead of the Aug. 2 enforcement date.
AI ML Tech News
Slaughter and May
The European Commission is considering a 3% tax on digital advertising that it estimates could raise 5 billion euros annually for the EU's next multi-year budget, according to a Commission working paper.
TNW
EuroNews
Disney is preparing to launch an AI-powered tool in July that will allow brands to generate TV ads, including video, scripts and music, targeting small and medium-sized advertisers. Competitors Amazon, Google and Meta already offer similar AI ad creation tools.
Startup Rise EU
Emarketer

Sources Split

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CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Slapping AI labels on every retailer ad — from a sofa photo to a touched-up product shot — waters down the whole point of disclosure. The EU AI Act's deep fake rules were built for manipulation, and the labels will help for some ads, but not all.

Narrative B

The EU's transparency code for AI-generated content exists precisely because consumers deserve to know what's real — and carving out retail ads sets a dangerous precedent. The Code already distinguishes between mandatory and optional requirements, so compliance is workable.