Shanghai Mandates Labeling for AI-Generated Content in Outdoor Advertising
The Shanghai Municipal Administration for Market Regulation has released new compliance guidelines for outdoor advertising. The guidelines mandate that any advertising utilizing AI-generated content (AIGC) must be clearly labeled, while also cracking down on misleading claims and deceptive citation practices. This policy reflects China's intensifying regulatory oversight on generative AI and commercial transparency, aiming to protect consumers from deceptive marketing. It sets a localized precedent that could influence how other major cities regulate AIGC and misleading advertising tactics in public spaces. The guidelines target deceptive practices such as "fine print exemptions" and "tailored citations" (萝卜坑式引证), where advertisers use self-serving metrics to claim top rankings. Additionally, it restricts advertising in residential elevators, prohibiting audio ads at night and limiting content unsuitable for minors.
## BACKGROUND
Under China's broader AI governance framework, regulators require clear labeling of deep synthesis and generative AI content to prevent public confusion or misinformation. "Tailored citation" (萝卜坑式引证) is a deceptive marketing tactic where companies cite biased or custom-made industry reports to falsely claim they are "number one" or "market leaders."