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Australian Ad Watchdog Confirms Existing Rules Apply to AI-Generated Ads

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Australian Ad Watchdog Confirms Existing Rules Apply to AI-Generated Ads

The practice is already drawing attention from those who police advertising in Australia. And the message from the top is clear: existing rules still apply, even when the images are made by a machine. Greg Wallace, Executive Director of Ad Standards, confirmed that the watchdog assesses AI-generated content the same way it treats any other advertisement.

The key benchmark is the advertising codes, which cover dishonesty. That means a seller who uses an AI-generated woman to prop up a used car listing could still be in breach, if the image misleads a buyer about what they are actually purchasing.

The trend has been unfolding on Facebook Marketplace, where private sellers are altering photos not to hide a scratch or a dent, but to manufacture a fantasy. The result is a flood of computer-generated women posed next to vehicles. Some images are obvious fakes.

Others are harder to spot. The effect on buyers is already tangible.

Complaints have rolled in, and the reaction online has been sharp. On the CarsAustralia subreddit, one user called the practice “misogynistic.” Another wondered aloud whether the men buying these vehicles end up angry when no woman shows up to hand over the keys. Others just called the whole thing “cringe.” The fallout is not limited to gender politics.

A broader concern about transparency is taking hold. One buyer summed it up bluntly: “It at least tells a potential buyer that they’re not an honest seller.” That single line captures the core risk for anyone using AI to juice a listing. The tactic may grab a glance, but it also flags the seller as someone willing to deceive.

Trust, once broken, is hard to restore. Not all AI-generated listing images are sexualised.

One user on X shared an image of a grizzly bear sitting on a Kawasaki KLR motorcycle, writing that they had “never cared about a Kawasaki KLR until now.” That post acknowledged the tactic works — at least for attention. But the same user did not say whether they bought the bike. Attention and a sale are not the same thing.

For advertisers and regulators, the rise of AI-manipulated photos presents a practical problem. The volume of listings is huge.

Facebook Marketplace hosts thousands of vehicle ads every day. Policing each one for AI-generated content is not feasible with current resources. That puts the burden on buyers to be sceptical.

And it puts sellers on notice: if a complaint lands, the ad will be judged by the same standards as any other. The trend is likely to continue. The tools are cheap and easy to use.

The payoff — a listing that stops a scroller mid-thumb — is immediate. But the consequences are stacking up.

Criticism from buyers is growing. Watchdogs are watching. And the marketplace itself is becoming a place where the first question is not about the car, but about the person standing next to it.

Whether that person is real, or just a few lines of code, is now a question every buyer has to ask.


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