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Tag: labeling

  • Unveiling the Hidden Loophole in EU’s New AI Labeling Rules: A Threat to Authentic Online Content?

    Unveiling the Hidden Loophole in EU’s New AI Labeling Rules: A Threat to Authentic Online Content?

    The European Union (EU) understands the need for transparency in AI-generated content and has decided to enforce mandatory labeling of such content. However, this new ruling has not been without its own set of challenges.

    EU’s New AI Act

    The EU’s AI Act, first introduced in 2023 and approved by the EU Parliament in March 2024 with 523 votes for, 46 against, and 49 abstentions, aims to protect customers and democracy. As stated by EU parliament member Sergey Lagodinsky, the AI Act’s purpose is not solely to protect consumers but also to preserve democracy and the authenticity of online facts. The AI Act came into effect on August 2nd, requiring all AI-generated content to carry a specific label. This rule applies to AI systems that operate in the EU market, including AI-generated images, videos, audio, and text.

    The Loophole and Penalties

    However, the mandated labeling only applies to content designed to look real, creating a dilemma due to the subjectivity of what constitutes “real.” The law excludes personal content and “evidently artistic” works, including satirical and fictional content, making its interpretation even more ambiguous. The EU has also outlined penalties for violating the rule, with fines as high as €15m or 3% of a company’s global turnover, potentially resulting in billions of dollars for corporations such as Apple, Google, and Samsung. While the August 2nd deadline applies to new AI systems, existing systems will have an additional four months to comply.

    It’s worth noting that many companies, particularly large social networks and apps, already incorporate policies regarding AI-generated content. Google, for example, utilizes a special SynthID tool to label billions of images and audio content spanning 60,000 years. Despite these policies, AI images and videos frequently slip through the cracks, making their way onto people’s feeds. With the new EU policy in effect, these companies will need to enhance their enforcement or risk financial penalties.

    Questions & Answers

    What is the main purpose of the EU’s AI Act?
    The EU’s AI Act primarily aims to ensure transparency in AI-generated content, thereby protecting consumers and upholding the authenticity of online facts to safeguard democracy.

    What kind of content does the EU’s AI Act mandate to carry labels?
    The AI Act requires all AI-generated images, videos, audio, and text that are designed to appear real and operate in the EU market to carry a specific label.

    What are the penalties for non-compliance with the EU’s AI Act?
    Companies found in violation of the AI Act are subject to fines of up to €15m or 3% of the company’s global turnover, potentially resulting in billion-dollar fines for large corporations.

  • Hong Kong chain AbouThai raided over labelling breaches

    Hong Kong chain AbouThai raided over labelling breaches

    Hong Kong authorities have seized nearly 9000 Thai cleaning products suspected to have wrong labeling from a shop founded by a pro-democracy activist facing charges under the city’s contentious national security law. Customs officers on Thursday raided 25 shops belonging to the chain, AbouThai, and arrested a 33-year-old male director of the group, the government said in a statement.

    The suspect had been released on bail and further arrests had not been ruled out, it added.

    “The product information marked on the packages of the products involved failed to bear Chinese and English bilingual warnings or cautions,” it said, adding the estimated market value of the 8805 products seized was about HK$400,000 (US$51,400).

    Under Hong Kong’s Consumer Goods Safety Ordinance, warnings or cautions on products must be in both English and Chinese and are required to be “legibly and conspicuously shown on the goods”.

    Customs chiefs said the raids were carried out in connection with missing safety warnings on cleaning products, with some only having warnings or cautions in Thai, while others bore warnings or cautions in Thai and English.

    The company’s founder, Mike Lam, is among 47 democrats charged under the city’s national security law on a charge of conspiracy to commit subversion and is currently on bail.

    Crowds queued outside branches of the shop across the city on Friday to show support for Lam, with some saying they believed the raid was politically motivated.

    “I find it unreasonable that the Customs targeted AbouThai. That’s why I come here to support. I am quite touched that many people come,” said Chris, who declined to give his full name due to the sensitivity of the national security law.

    The legislation punishes what Beijing broadly defines as secessionism, subversion, terrorism and collusion with foreign forces with up to life in jail.

    Local broadcaster RTHK quoted Vincent Chan, from the customs consumer protection bureau, as saying the department condemned any “false accusation” that the raid was an “act of repression”.

    Hong Kong anti-government protesters have queued outside businesses that openly support the democracy movement since anti-government protests flared in 2019.

    The former British colony returned to Chinese rule in 1997 with a promise of safeguards for its wide-ranging autonomy. Democracy activists say authorities are chipping away at those freedoms, accusations which officials in Beijing and Hong Kong reject.

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