A recent trend among Australian small businesses using AI to create images of celebrities, particularly Prince Harry and Meghan Markle, has raised concerns regarding potential legal repercussions. During the royals’ recent visit to Australia, several companies posted AI-generated images depicting them enjoying their products, hoping to engage with their customers through humour and creativity.
However, consumer law experts warn that these posts may violate Australian Consumer Law, as they could be seen as misleading or implying false endorsements. Jeannie Paterson, a law professor at The University of Melbourne, highlighted that producing such images without clear disclaimers might lead to investigations by the Australian Competition and Consumer Commission (ACCC). Misleading representations could result in legal action from the depicted celebrities, who aim to protect their brand and reputation.
One Melbourne café owner, Luke from Nina’s Cucina, shared an AI image of the royals dining in his establishment, garnering over 800,000 views. While he did not intend to mislead viewers, some were initially fooled. Citing his motivation to spread positivity during tough times, Luke clarified that the intent was not malice but merely to engage his audience. Although the post did not translate into significant sales, it did increase his social media following, which he considered a bonus.
Similarly, a husband-and-wife team from Beachside Bakehouse in San Remo also crafted a playful AI image of Harry and Meghan at their bakery, resulting in around 350,000 views. They noted that while most viewers recognised the image as AI-generated, some may have briefly misinterpreted it as real.
Though the fun behind these images is apparent, the potential legal pitfalls are severe. Paterson emphasised that parodies must be evident and conform to strict standards regarding clear markings as AI-generated content. She advises businesses to avoid using celebrity AI images altogether to mitigate risks.
In light of these warnings, Luke has since added a disclaimer to his post, stressing the need for transparency in digital marketing practices. As small businesses navigate the challenging landscape of marketing and consumer engagement, understanding the implications of AI-generated content is crucial to avoid unintended consequences linked to misleading advertorials.