ASCI issues AI ad labelling rules, effective in three months

India's advertising regulator, ASCI, has issued new guidelines requiring disclosure of AI-generated content in ads when its omission could materially affect consumer understanding or purchasing decisions. The rules take effect three months from publication. The guidelines, released September 29 after stakeholder consultations, mandate labels for synthetic influencers, replicated likenesses with consent, fabricated events, and AI-generated product demonstrations. Paid AI product recommendations must carry a "Sponsored by [Brand]" label. Routine edits, decorative elements, and administrative text uses are exempt. Prohibited uses include fabricated endorsements, misleading product exaggerations, and deepfakes without consent. ASCI stated an AI label does not make misleading ads acceptable, and advertisers remain responsible for full compliance with the ASCI Code.