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ASCI sets disclosure guidelines for synthetic content in ads

ASCI issued advertising guidelines effective three months from the date of publication, requiring disclosure when synthetic content could mislead consumers. Fabricated endorsements and non-consensual deepfakes remain prohibited; paid or sponsored AI-generated product suggestions must carry the label "sponsored by [brand]".

Newer report on another story , , Financial Express : 97.3% of 1,609 influencer ads ASCI processed in 2025-26 needed changes, showing uneven disclosure compliance

The numbers

Figures from Business Standard,

Guidelines implementation window: three months
Draft guidelines release: May
Key guidance areas: four

Why it matters to operators and investors

Prioritize AI-adtech partners and acquisition targets with disclosure controls, consent verification and safeguards against prohibited fabricated endorsements and non-consensual deepfakes.

What to watch next

  • Published campaign policies requiring synthetic-content disclosure
  • Live paid AI product suggestions carrying the specified sponsorship label
  • Agency announcements of new consent and provenance checks
  • ASCI decisions involving undisclosed synthetic ads or fabricated endorsements

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Retail advertisers are likely to review synthetic campaigns before the implementation window closes, prioritizing content that could mislead consumers.
  • Advertising agencies are likely to add disclosure and consent checks to creative approvals, increasing demand for documented content provenance.
  • Providers of paid AI-generated product suggestions are likely to introduce "sponsored by [brand]" labels, making commercial recommendations more visibly distinct from unpaid suggestions.
  • Retail advertisers may shift away from synthetic testimonials with uncertain consent because disclosure does not make fabricated endorsements or non-consensual deepfakes permissible.

The counter-case

The case against this reading — not reported by the source.

This may be an incremental compliance update rather than a material retail catalyst. Disclosure is triggered where synthetic content could mislead, not necessarily by every use of AI. Brands may absorb labeling into existing ad-review workflows without materially changing spending or sales. ASCI guidance should not be conflated with a new statutory ban.

The source

Source Read the source at Business Standard

Published

Confirmed by ET Small Business

First seen