The law catches up: AI now has to say it's AI
2 August 2026. The transparency obligations in Article 50 of the EU Artificial Intelligence Act came into application. For the first time in a major market, AI systems that interact with people must identify themselves, AI-generated audio, image, video and text must be marked so it can be detected, systems that read faces or emotions must be disclosed, and deepfakes and AI-written text on matters of public interest must be labelled.
The reach is what makes it matter in North America. The rules follow the audience rather than the head office, so a US or Canadian brand whose AI outputs are seen by people in the EU is in scope. Penalties run to EUR 15 million or 3 percent of worldwide annual turnover, whichever is higher. The European Commission adopted its final guidelines on 20 July 2026, and a voluntary Code of Practice proposes a standard visual "AI" mark and a distinction between fully AI-generated and AI-assisted content.
For this initiative the significance is narrower and sharper. Undisclosed synthetic content has been the single hardest form of trustwashing for an ordinary person to detect. A label does not make a brand honest, but it turns a hidden thing into a checkable one.
Both 2026 reports updated for the new rules
August 2026. The Brand Report and the Consumer Report now each carry a dedicated section on the labelling duties, written for their own audience: compliance, deadlines and credibility for brands; what the label means and when a missing one is a red flag for consumers. Both were also refreshed with the current enforcement picture, including the FTC's May 2026 settlements over an advertising service marketed as an AI "Active Listening" tool, and the February 2024 EU influencer sweep.
The Trustwashing Reports 2026 are here
First edition, 2026. We have published two companion reports: one for brands and one for consumers, examining how AI, influencers, fake proof, and unverifiable claims are changing trust, and what to do about it. Both are free to download after a quick registration.
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