AI is slowly weaving its way into every aspect of our daily lives, and small businesses like independent restaurants are benefiting by being able to make relatively cheap ads using the technology.
When does an AI ad go too far, and when does it get to the point where an ad constitutes false advertising?
We spoke to Ad Standards and also got some information from the Canadian Competition Bureau to answer that question. However, one thing was very clear in our conversations with both entities: there is very little in the way of true standards or rules dedicated to AI advertisements at this point in time.
Backlash against AI ads
A quick search on Google reveals plenty of conversations with residents and customers of businesses pushing back against misleading AI ads. Many wonder what constitutes false advertising.
For example, this thread in the AskVan subreddit had many expressing concerns over AI ads, which prompted a comment from someone saying, “I wish we had laws like in Japan where food must look like the thing you’re getting.”
We also published a similar story earlier this year about the rise of AI-staged listings in the real estate market, which there was some noise about.
The Wall Street Journal also published a story about AI ads, suggesting that it’s “making people sick.”
Another thread from the Sarnia subreddit earlier this year points to several examples of ads generated by AI that are questionable.
One Redditor said, “I refuse to go to a restaurant if they use AI images for their food. š¤¢”
SFU also did a study earlier this year which suggested that a majority of B.C. residents don’t trust AI.
What Ad Standards says about AI ads
“Canada does not currently have a dedicated regulatory framework specifically for AI-generated advertising,” an Ad Standards spokesperson told Daily Hive.
It did point out that existing laws and self-regulatory standards apply, regardless of whether AI was used or not.
That includes the Competition Act’s “misleading-advertising provisions,” administered by the Competition Bureau and the Canadian Code of Advertising Standards.
Ad Standards pointed out that just a few weeks ago, the Competition Bureau shared some information about AI transparency.
We asked Ad Standards specifically about food advertising, and what would constitute false advertising or a breach of the Code.
“If the image creates the impression that it fairly represents the food being offered, but the actual meal is materially different, the advertisement could raise concerns under the Code. Whether a particular advertisement breaches the Code would depend on its full context and would be determined through the complaints process,” Ad Standards said.
It added that even a disclaimer stating that an image was AI-generated doesn’t necessarily correct a misleading impression.
“A disclaimer cannot contradict the advertisementās main message or save an otherwise misleading overall impression,” the spokesperson said.
If a complaint about an ad is submitted to Ad Standards, it would be assessed under the same provisions of the Code that apply to all ads.
Where the Competition Bureau stands on AI ads
According to the Competition Bureau, it has to conduct a thorough and complete examination of the facts of any matter before it reaches a conclusion on whether or not the Competition Act was contravened.
It adds that the Act prohibits businesses from making materially false or misleading representations to promote a product, service, or any business interest.
Further, the Competition Bureau encourages anyone who suspects an individual or a business of engaging in false or misleading ads to file a complaint.
You can do so using the Competition Bureau’s complaint form.
A notice on the complaint form’s website suggests that the Competition Bureau is receiving a high volume of complaints.
Long story short, if you feel misled, file a complaint.
What’s your take on AI-generated ads? Let us know in the comments.