The Obligations of Online Advertisement Platforms to Disclose AI-Generated Advertisements in Taiwan

According to the “Asia Scam Report” published in 2024 by the Global Anti-Scam Alliance (GASA), nearly 40% of respondents reported having received scam messages suspected to be generated by AI. Fraud syndicates have been leveraging generative AI to rapidly produce scam content, combined with automated dissemination via bots, resulting in a surge of fraudulent activities^[1].

Legal Regulation: Article 31, Paragraph 1, Subparagraph 4 of the Fraud Crime Hazard Prevention Act

In response to the misuse of generative AI technologies for fraudulent purposes, the competent authority enacted Article 31, Paragraph 1, Subparagraph 4 of the Fraud Crime Hazard Prevention Act on July 31, 2024. This provision mandates online advertisement platforms to disclose whether advertisements utilize AI-generated or deepfake technologies. "Deepfake technologies" refer to the technical exhibiting forms through computerized or other technological means, leading others to be misled into believing they are genuine.

The purpose of this regulation is to enhance transparency in online advertising, thereby aiding the public in assessing the credibility of advertisements and assisting law enforcement in tracing the origin of fraudulent ads. It also aims to prevent the impersonation of real individuals using generative AI technologies^[2]. The law authorized the competent authority—the Ministry of Digital Affairs—to establish operational guidelines regarding disclosure standards, simplified formats, procedures, and other related matters.

Subordinate Regulation: Regulations Governing the Disclosure of Information and Operational Procedures for Internet Advertisement

On November 28, 2024, the Ministry of Digital Affairs issued the Regulations Governing the Disclosure of Information and Operational Procedures for Internet Advertisement, which further clarifies how such disclosures should be made.

Under these guidelines, online advertisement platform operators are, in principle, required to directly disclose on the advertisement itself whether the content involves "deepfake technologies or AI-generated personal imagery" (hereinafter referred to as "the subject information"). If space on the ad is limited, a link may be displayed on the surface of the advertisement for the platform users to click and query instead. Additionally, online advertising platform operators must require advertisers or sponsors to disclose the subject information at the time the ad is submitted, thereby reinforcing anti-fraud measures on the platform.

Disclosure Obligations and Penalties for Online Advertisement Platforms

Online advertisement platforms that fail to fulfill the disclosure obligations outlined in Article 31, Paragraph 1 of the Fraud Crime Hazard Prevention Act may be fined by the competent authority in an amount ranging from NT$200,000 to NT$5 million and will be ordered to make corrections within a specified period. If corrections are not made by the deadline, the platform may face repeated fines. In serious cases, penalties may range from NT$1 million to NT$25 million^[3].
 

[1] 說資安新聞網，https://cybersecurenews.com.tw/expert-talk-049/（last accessed: April 8, 2025）。
[2] The Legislative Rationale of Article 31, Paragraph 1, Subparagraph 4 of the Fraud Crime Hazard  Prevention Act.
[3] Article 40, Paragraph 1, Subparagraph 4 of the Fraud Crime Hazard Prevention Act.