According to an expert in consumer law, certain social media posts might violate Australian Consumer Law.

Crafting an AI-generated image to portray an event that never occurred can potentially mislead audiences, contravening Australian Consumer Law.

Such images could be interpreted as false celebrity endorsements, and the Australian Competition and Consumer Commission (ACCC) has the authority to take legal action for deceptive practices.

However, exceptions exist when the AI image is unmistakably a parody or is explicitly labeled as AI-generated.

“For a parody to be valid, it must be obvious and something that no one would mistake at first glance,” Patterson explained to nine.com.au.

AI disclaimers should also be prominently displayed, not buried in small print or hidden within hashtags.

Businesses could also land in hot water if the famous people who appear in their AI image decide to sue for misleading conduct.

“Celebrities may well litigate to protect their own reputations and their own brands,” Paterson said.

She advises businesses to steer clear of the celebrity AI trend, just to be safe.

Since speaking with nine.com.au, Luke has added a disclaimer to the Nina’s Cucina post.

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