AI Labeling Requirement from August 2026: What Shopify Merchants Need to Know Now

As of August 2, 2026, Shopify merchants must label certain AI-generated content if they use it as an operator in their own store or in advertising. This is based on Article 50 of the EU AI Regulation (Regulation (EU) 2024/1689). The labeling requirement primarily applies to so-called deepfakes, i.e., AI content that resembles real people, products, or situations and could therefore be perceived as authentic. Advertising and product texts are generally not affected, unless they contain statements about sustainability, health, or consumer safety.

For many Shopify merchants, it is unclear whether the new regulation even applies to them and what correct labeling in the store looks like. In this article, we clarify the most important questions about this: from its relevance to concrete examples and practical implementation. Note: This article represents our assessment and is not a substitute for legal advice.

1. What is the AI labeling requirement and when does it apply?

As of August 2, 2026, AI content subject to labeling must be identified in the EU. The legal basis is Article 50 of the AI Regulation (Regulation (EU) 2024/1689), which provides for specific transparency obligations for providers and operators of certain AI systems.

Two documents serve as practical guidance, although they are not legally binding themselves:

• the draft guidelines of the EU Commission on Article 50 of the AI Regulation from May 8, 2026
• the final Code of Practice on Transparency of AI-generated Content from June 10, 2026

Both provide guidance on implementation but are not a substitute for a legal review of individual cases.

2. Who is affected by the requirement as a Shopify merchant

This affects operators of AI systems, meaning companies that use an AI system under their own responsibility. For Shopify merchants, this is relevant as soon as AI-generated or AI-manipulated images, videos, or voices are used in their own store or in advertising.

Important for practical application: Even those who commission an agency or freelancer to create AI product images can become an operator themselves. The deciding factor is that the content is published under their own responsibility, i.e., in the store or in advertising.

3. What content is considered a deepfake and is subject to labeling

The labeling requirement primarily applies to so-called deepfakes. These are AI-generated or AI-manipulated image, audio, or video content that resembles real people, objects, places, facilities, or events and can falsely appear authentic or truthful to a person.

Two points are crucial for classification as a deepfake:

• The content resembles reality or something that could realistically exist.
• It creates an impression of authenticity in the audience, even if there is no intention to deceive on the merchant's part.

Obviously unrealistic representations, such as fantasy creatures or clearly recognizable AI cartoons, are not considered deepfakes and are therefore not automatically subject to labeling.

4. Examples: What is a deepfake, what isn't?

The line between deepfake and uncritical AI content is best shown by concrete examples from everyday online store life. The impression an content creates on the audience is always decisive.

Not a deepfake (not automatically subject to labeling)	Deepfake (subject to labeling)
Depiction of a Sphinx flying over the Eiffel Tower	Person with the product, although they never used it
Mice arguing over cheese in a video	Product image in the Shopify store in a landscape where the product never was
AI cartoons of historical events	AI video in which an influencer apparently promotes a product, although the cooperation never took place
	AI models, AI avatars or replicated persons in product presentation
	Virtual places, such as a virtual living room in the product image
	Supposed customer testimonials or expert opinions in the store

For Shopify merchants, the examples on the right are particularly relevant, as photorealistic product images and AI models are frequently used in e-commerce. A special borderline case is AI post-processing of existing shoots. Here, there are currently still grey areas, as the transition between deepfake and normal image editing is fluid. Pixelated content also falls into the category of edited images.

Important to know: The labeling requirement does not check or replace any other rights. Personality, trademark, copyright, and data protection rights must be classified independently. The IT-Recht Kanzlei offers a more in-depth overview with further examples.

5. Special case: texts and already published legacy content

For texts, there is an important restriction: only texts published to inform the public about matters of public interest are subject to labeling. Classic advertising, marketing, or product descriptions in the Shopify store therefore generally do not fall under this obligation.

An exception applies if texts contain statements about sustainability, health effects, or consumer safety. Such content may also be subject to labeling in the online store.

There is also a clear rule for existing content:

• Content generated and published before August 2, 2026, does not need to be labeled retrospectively.
• When republished, labeling is recommended but voluntary.

6. Where and how must labeling be done?

Disclosure must be clear, unambiguous, and occur at the latest upon the first perception of the content. The notice must be perceptible without technical aids, i.e., visible or audible, without users having to click extra or use tools.

Suitable placements in the Shopify store are:

• directly on the image
• immediately below the image
• in the visible area of the product offering
• as a clearly assigned overlay

Not permissible are notices that only appear at the end of a long product description, in the terms and conditions, in the privacy policy, or under several menu levels.

Additional points apply depending on the content type:

• Images: The notice must be perceptible when viewed and must not be lost upon download.
• Videos: The notice must not appear too late; for longer content, a single display may not be sufficient.
• Audio: The notice must be visible in the player environment.
• Texts: The notice must appear at the latest upon the first perception, for example, at the beginning, not as a footnote.

Example formulations such as "AI-generated image" or "The motif was created with the help of artificial intelligence" are suitable. Formulations such as "AI powered," "digitally optimized," or "virtually enhanced" are not sufficient. Further classifications can be found at IT-Recht Kanzlei.

7. Accessibility: requirements for the notice

The labeling must also be accessible to screen readers. In addition, contrast and plain language must be considered so that the notice remains understandable for all user groups.

In the Shopify store, only "AI" or "KI" should be used as an abbreviation. For offers aimed at children, elderly, or less media-savvy people, the notice must be simpler and more conspicuous.

Further accessibility requirements:

• If the notice does not appear permanently, for example in video content, it should remain visible long enough to be recognizable even for people with cognitive impairments.
• Additional layers with further information must also be accessible.
• The icon must not be covered by other overlays, such as banners, pop-ups, cookie notices, or buttons.

8. Implementation with the EU icon set or custom icons

For implementation in the Shopify store, the EU Icon Set of the European Commission is available. It is free, without the obligation to cite the source, and not mandatory. A custom, equivalent implementation is also possible.

Some special features of the EU icons for practical use:

• The icons are available in four variants: black, white, black with 50% transparency, and white with 50% transparency.
• There is no explicit approval for design changes, but also no explicit prohibition of changes.
• The icons are only available in English. For German-speaking shops, a short German text note is therefore additionally recommended, even if there is no official notice from the Commission.

For choosing the right solution in your own online store, we recommend the following orientation: If you use only a few AI contents in the store, the EU icon set in combination with alt texts is a good choice. If you use many AI contents, you can implement a suitable alternative with custom icons in your own store style.

In any case: The icons do not replace a legal classification in individual cases. It must still be checked whether a labeling obligation exists and whether the notice is sufficiently visible, understandable, and technically correctly integrated. A practical classification can be found at IT-Recht Kanzlei.

9. Fines for violations

Violations of the labeling requirement can result in fines of up to 15 million euros or 3% of the total worldwide annual turnover, whichever is higher. For small and medium-sized enterprises and start-ups, the lower amount applies.

Shopify merchants are therefore advised: Even those who use only individual AI-generated product images or videos in their store should take the labeling requirement seriously, as fines can be severely high regardless of company size.

10. Conclusion: Next steps for your own store

As of August 2, 2026, Shopify merchants should check where AI-generated or AI-manipulated content is used in their store. This primarily affects photorealistic images, videos, and voices that create an impression of authenticity, as well as AI chatbots in customer contact.

For practical application, we recommend the following approach:

• Identify existing and planned AI content in the store and in advertising
• Check whether it is a deepfake within the meaning of Article 50 of the AI Regulation
• Choose appropriate labeling, for example, using the EU icon set or custom icons
• Ensure placement and accessibility of the notice in the store