Food businesses in Malaysia must disclose if they use AI-generated images in advertisements, as mandated by the Domestic Trade and Cost of Living Ministry (KPDN). The ministry stresses that transparency is essential to prevent consumers from being misled when making purchasing decisions.
This requirement aligns with KPDN’s Guidelines on Avoiding False or Misleading Advertisements, which ensure that advertisements are truthful and accurate. According to The Star, Malaysian consumers have raised concerns on Reddit about AI-generated food images on food delivery platforms, suggesting they could constitute false advertising. However, KPDN states that it has not received any formal complaints on the matter.

Regardless, the ministry advises food businesses and delivery platforms to review the guidelines, which are available online. Experts have also warned that AI-generated images should be clearly labelled to maintain consumer trust and prevent impulsive spending.
KPDN says consumers who feel deceived by AI-generated food images are encouraged to file complaints through its various channels, including WhatsApp, the e-aduan portal, its call centre or the ezADU KPDN app. If financial losses occur due to misleading advertisements, they may seek compensation through the Tribunal for Consumer Claims.

Meanwhile, businesses found to have violated advertising regulations could face legal action under the Consumer Protection Act 1999 or the Trade Descriptions Act 2011. Penalties include fines of up to RM100,000 or three years in prison for individuals, while companies could be fined up to RM250,000.
(Source: The Star)