EU AI Act: Disclosure Requirement for Online Retailers Starting August

Starting August 1, 2026, online retailers in the European Union will be required to disclose the use of artificial intelligence (AI) in certain cases. This regulation is part of the new EU AI Act, which aims to increase transparency and consumer protection in digital commerce. The AI Act classifies AI applications into various risk categories. Retailers must inform consumers particularly when AI systems are used for decision-making that can influence consumer behavior or purchasing decisions.

This includes, for example, personalized product recommendations or pricing strategies based on algorithms. The regulation aims to ensure that consumers are informed about the technologies that influence their purchasing decisions. The European Commission emphasizes that transparency is a central element of the new law to strengthen consumer trust in digital services. Online retailers that violate the disclosure requirement face significant penalties, with fines potentially reaching up to 6% of their global annual revenue.

This measure is intended to ensure that the new regulations are taken seriously and that retailers comply with the requirements. The introduction of the AI Act occurs in a context where the use of AI in business is rapidly increasing. According to a study by the European Commission, 70% of companies in the EU are already using AI technologies in some form. The new regulations aim to better manage the risks associated with the use of these technologies. The disclosure requirement applies not only to large companies but also to small and medium-sized enterprises (SMEs).

These SMEs must also ensure that they meet the new requirements to avoid legal consequences. The EU plans to offer support and training to help SMEs implement the new regulations. The regulation is viewed differently by various stakeholders. While consumer advocates welcome the measure as an important step towards greater transparency, some retailers express concerns about the additional administrative burdens associated with compliance with the new regulations. The EU has announced that it will regularly review the impact of the AI Act and make adjustments as necessary. This is to ensure that the regulations keep pace with technological developments and meet consumer needs. The first reports on the implementation of the new regulations are expected to be published in January 2027 to assess compliance and make any necessary adjustments.