FTC Mandates Disclosure for Ads Posing as AI Virtual Characters

The Fair Trade Commission (FTC) has established regulations mandating disclosure for advertisements featuring AI virtual characters impersonating experts. The rules are designed to prevent ads where virtual characters, created with generative AI and deepfake technology, deceive consumers by posing as experts.

According to the revised regulations, phrases clearly indicating the character is virtual must be included, tailored to the specific media format, such as blogs or video advertisements. Clear criteria have also been provided to ensure consumers do not mistake these characters for real individuals.