Is it legal to use AI-generated images of my product in Australia and NZ?
By Dan BartleyUpdated 4 minute read
The short answer
Yes. Neither Australia nor New Zealand has an AI-specific rule against it. The law that applies is the one that covers every product photo: the image must not mislead. Regulators judge the overall impression a shopper takes away, so an accurate AI image of your real product carries the same risk as an honest photo, and one that makes it look better than it is can breach the law.
Which Australian law applies to AI product images?
The Australian Consumer Law, the same law that covers every advertisement and listing. It makes it unlawful to engage in misleading or deceptive conduct in trade, and to make false or misleading representations about the standard, quality, composition or style of goods.
The ACCC has named the AI version of the problem. Its December 2025 snapshot on artificial intelligence warns that generative AI can be used to make false representations about products, including listings that make products appear more sophisticated, or of a higher quality, than they actually are.
This page is general information about how the law applies, not legal advice. If a campaign makes claims about results, health or safety, have a lawyer review it before it runs.
What makes an AI product image misleading?
An image misleads when the overall impression it gives a shopper is false, whatever the business intended. The ACCC and state regulators' guide to the law puts it plainly: it is a business's actions and statements that matter, not its intentions, and the whole advertisement counts, images included.
| What the image shows | Where it stands |
|---|---|
| The real product, accurate in colour, size and finish, in a generated room | Treated like any styled photo, provided nothing in the scene suggests extras are included |
| Other items for sale beside the product, such as a lamp or a rug | Make clear what is included, or shoppers may expect it in the box |
| Colour, texture or finish improved beyond the real product | Likely to mislead about quality or style |
| The product shown larger or smaller than it is | Likely to mislead about what the buyer receives |
| A result the product cannot deliver, such as a fuller look or a before-and-after | Likely to mislead about performance |
| A generated customer, review or endorsement | Separately prohibited: false testimonials and false claims of sponsorship or approval |
Source for the test, the testimonial rule and the intention point: Avoiding unfair business practices, the guide published by the ACCC with the state and territory regulators.
Does a line saying the images are AI generated protect me?
Not if the image itself misleads. The same guide says that in most cases a business cannot rely on small print and disclaimers as an excuse for misleading conduct, and New Zealand's Commerce Commission tells advertisers not to rely on fine print to correct a misleading impression.
A label tells shoppers how the image was made. It does not change what the image says about the product. An accurate frame does not need one under current law, and an inaccurate frame is not fixed by one. The platform rules on labels are covered in do I have to disclose that my product photos or ads are AI generated?
What is the law in New Zealand?
The Fair Trading Act, enforced by the Commerce Commission, which makes it illegal for anyone in trade to mislead consumers about price, quality or features. The Commission says the test is the overall impression given by pictures, advertisements and promotional material.
The Commission's page on your obligations as a business adds that a misleading impression can come from what is left out, not only from what is shown. Its guidance on advertising your product or service asks advertisers to consider what the average consumer would take away, in print, on screen or online.
What happens if a product does not match its AI image?
The customer has a legal remedy in both countries. In Australia, goods must match the description you give, and a major problem lets the customer choose a refund or a replacement; in New Zealand, a product significantly different from its description counts as a serious problem.
See Australian Consumer Law and your business on business.gov.au and the Consumer Guarantees Act guidance from New Zealand's consumer protection agency. On an online store the photos carry much of that description, so an inaccurate frame can cost a refund long before any regulator is involved.
How do I use AI product images safely?
Use AI to change the setting, never the product, and check every frame against the real thing before it goes live. Most risk is removed at that check.
- Compare each frame with a daylight photo of the real product: colour, size, materials, parts and every word of text
- Make clear what is included when the scene shows other items
- Keep the source photos and notes for every frame, so you can show what the product is
- Turn off ad-platform AI features that can alter the product after you approve it
- Never generate customers, reviews or endorsements
- Redo any frame whose product changes, for example after a new production run
Other questions people ask about this
Can I be penalised for misleading AI product images?
Yes, the same as for any misleading image. Courts can order declarations, injunctions, corrective advertising and financial penalties under the Australian Consumer Law, and the Fair Trading Act carries its own penalties in New Zealand.
Do I have to label AI product images in Australia?
No AI-specific rule requires it. What the law requires is that the image does not mislead, and a label does not fix an image that does. Some ad platforms add or require their own labels.
Read the full answerCan I use AI images of a product before my stock arrives?
Yes, as long as the frames show the product as it will arrive. Make them from a production sample, and redo any frame if the colour, size or finish changes in the final run.
Who is responsible if Meta's AI changes my product in an ad?
The ad runs in your name, and regulators judge the impression it creates rather than who made each pixel. Turn off the creative enhancements that can change the product before the ad goes live.
Read the full answerStill have a question? Ask us
Sources
- ACCC: Recent developments in artificial intelligence, industry snapshot (December 2025)
- ACCC and state and territory regulators: Avoiding unfair business practices (copy hosted by Consumer Affairs Victoria)
- Commerce Commission New Zealand: Your obligations as a business
- Commerce Commission New Zealand: Advertising your product or service
- business.gov.au: Australian Consumer Law and your business
- Consumer Protection New Zealand: Consumer Guarantees Act