AI-generated ads are popping up in Metro Vancouver—but Canada has no specific rules for them yet

Small businesses across Metro Vancouver, including independent restaurants, are using AI to create relatively cheap advertisements. But Canada currently has no dedicated regulatory framework specifically for AI-generated advertising, according to Ad Standards, the industry body that enforces the Canadian Code of Advertising Standards.

Existing laws still apply regardless of whether AI was used: the Competition Act's misleading-advertising provisions and the Canadian Code of Advertising Standards both govern AI ads the same way they govern any ads.

Ad Standards is clear on the risk: "If the image creates the impression that it fairly represents the food being offered, but the actual meal is materially different, the advertisement could raise concerns under the Code." The body also confirmed that a disclaimer stating an image is AI-generated does not necessarily correct a misleading overall impression. "A disclaimer cannot contradict the advertisement's main message or save an otherwise misleading overall impression," Ad Standards said.

The Competition Bureau conducts thorough examinations of facts before determining if the Competition Act was contravened. The Act prohibits businesses from making materially false or misleading representations to promote products, services, or businesses.

Vancouver residents have been raising concerns on Reddit. One AskVan commenter wrote: "I wish we had laws like in Japan where food must look like the thing you're getting." Another said: "I refuse to go to a restaurant if they use AI images for their food."

An earlier SFU study found that a majority of B.C. residents don't trust AI. The Wall Street Journal published a story about AI ads "making people sick."