EU AI Act deepfake rule vs retail ads: Eurocommerce push

Eurocommerce is pushing to exempt AI-generated advertising from the EU AI Act's transparency requirements, in a letter to EU tech commissioner Henna Virkkunen that Reuters obtained. The EU law takes effect on August 2 and requires clear labeling of AI-generated or AI-altered content that qualifies as a "deepfake".

What is Eurocommerce asking for?

Eurocommerce wants ad images that "aren't meant to deceive" excluded from the AI Act's deepfake labeling rule, arguing routine product visuals should not be treated the same as deceptive content. Director General Christel Delberghe says an AI-generated living room image used to showcase a sofa should not fall under the law's deepfake definition, because requiring labels on that kind of content would affect a massive share of advertising and dilute the transparency rule's value for consumers. The EU Commission has not responded to the association's demand.

How does the EU law define deepfakes and what would be labeled?

The EU law requires clear labeling when AI was involved in creation or alteration of content that qualifies as a "deepfake." The statute's categories include a base icon for AI involvement, a label for "Fully AI-generated" content when material was created entirely by AI with no human creative input, and a category for "Partially AI-modified" content when existing human-created content has been altered with AI. Examples in those categories range from AI-generated videos of fictional events to photos where a face was replaced by AI.

How common is AI in retail marketing today?

AI-generated content is already widespread across retail platforms: Zalanda says 90 percent of the marketing content on its platform is now AI-generated. Matthias Haase, VP of Content Solutions at Zalanda, says, "Generative AI allowed us to move from a 'planning' mindset to a 'reacting' one, cutting those weeks of work down to just a few days — and our target this year is under 24 hours from spotting a trend to going live." Major retail members of Eurocommerce named in the letter include Amazon, H&M, Inditex and Ikea, and the article notes H&M and Zara use AI-generated clones of models.

Why it matters

The dispute exposes a tension between two policy goals: preventing deception and avoiding burdens on ordinary commerce. The word "deepfake" carries roots in non-consensual pornography and is often associated with fraud or criminal activity, yet the EU framework groups routine AI product images under the same label. If the definition remains broad, retailers and platforms that use AI for product galleries, furnished-room mockups or cloned models could face large-scale labeling obligations starting August 2, potentially shifting how digital ads are produced and displayed.

What to watch

Watch for the EU Commission's reply to Eurocommerce before August 2, the date the AI Act takes effect. Also watch whether major platforms adjust labeling practices or update their marketing workflows in response, and whether more retail trade groups echo Eurocommerce's request.