AI-generated ads under scrutiny, but no complaints lodged with Singapore watchdogs

The Consumers Association of Singapore (CASE) and the Competition and Consumer Commission of Singapore (CCS) have not received complaints about misleading or false advertisements using AI-generated content. This is according to a written reply by deputy prime minister (DPM) and minister for trade and industry Gan Kim Yong, reported The Straits Times.

Gan reportedly made the remark in response to a parliamentary question from Dr Charlene Chen. During a parliament session yesterday (25 Feb) Chen asked if the government was collaborating with consumer watchdogs and digital platforms, such as eCommerce and property listing sites, to detect and take down AI-generated content that misrepresents products and services.

The concern comes amid reports of property agents using AI-generated renderings in property listings in November last year.

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The minister reportedly said that the Council for Estate Agencies' (CEA) code of ethics and professional client care sets the minimum standards for real estate agents. The code of ethics and professional client care requires marketing materials to accurately reflect properties. Agents are also required to provide clear disclaimers when AI used to alter or enhance images or videos. Those who fail to meet the requirements will face enforcement action. 

In addition, the CEA is reviewing its regulations to provide further guidance on the use of AI in ads. 

Meanwhile, consumer protection laws, including the Consumer Protection (Fair Trading) Act, cover misleading claims by businesses, including those involving AI-generated content, Gan added. Consumers encountering such claims are encouraged to approach CASE for assistance.

MARKETING-INTERACTIVE has reached out to the Ministry of trade and industry, CASE and CCS for more.

In September last year, the CCS released an enhanced eCommerce guideline (TR 76), guiding industry players on the appropriate use of automated tools and AI. The guidelines were enhanced to address emerging challenges in Singapore's eCommerce market, as well as to enhance consumer trust and promote market competitiveness.

“The enhanced TR 76 represents a major step forward as it now covers more comprehensively the different aspects of a consumer’s purchasing journey, starting from pre- to post-purchase. We also now provide guidance to businesses operating in the online space so that they contribute to a fair and open environment," said Alvin Koh, chief executive of CCS at the time.

"CCS encourages online businesses to incorporate these updated guidelines, which will help build greater trust and efficiency in our e-commerce ecosystem for the benefit of both consumers and businesses," he added. 

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