Culture as Compliance Variable: What the Strait of Hormuz Crisis Teaches Us About Sanctions Compliance

In Italy, the use of AI in advertising already sits within a well-established framework requiring commercial communications to be transparent, truthful and non-misleading. These principles are enforced both under Italian consumer protection rules, reflecting EU law, and through the Italian advertising self-regulatory system, while the Italian Competition Authority (AGCM) may intervene against misleading commercial practices.

Against this background, the European Commission’s final Guidelines on Article 50 of the AI Act, adopted on 20 July 2026, provide important clarification on when the use of AI itself must be disclosed. The key point is that the mere use of artificial intelligence in the creation of advertising does not automatically trigger a disclosure obligation. The transparency obligations under Article 50 have applied since 2 August 2026 and, for deployers, are particularly relevant in the cases covered by paragraph 4, including deep fakes.

This does not, however, remove the need for a case-by-case assessment. Whether disclosure is required depends on the content actually disseminated, the way AI has been used, the degree of realism of the resulting content and, crucially, the perception it is likely to create for consumers in the relevant context.

In practice, disclosure will not always be required. AI may, for example, be used for minor technical adjustments, clearly fantastical or stylised settings, or to create an AI-generated background in which a real product is placed, provided that this does not alter consumers’ perception of the product, its characteristics, performance or use.

This approach has already been reflected in France by the ARPP – Autorité de Régulation Professionnelle de la Publicité, which published specific practical guidance on 3 August 2026. A similar distinction can be found in the recent WFA and ICAS guidance, which differentiates between uses of AI that affect consumers’ perception of the advertising message and uses that are merely technical, ancillary or decorative.

Where disclosure is required, it must be clear, distinguishable and understandable. Neither the AI Act nor the Commission Guidelines currently prescribe standard wording or a mandatory pictogram. Labels such as “AI-generated image”, “AI-generated video” or “AI-generated voice” are therefore examples rather than compulsory formulas.

The Italian advertising self-regulatory system is also considering the adoption of specific guidelines on the use of AI in commercial communications, including on appropriate labelling methods. We will keep you updated on the next developments in Italy.

For further information contact: Margherita Barié Head of Carnelutti IP Team

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False Claims Act and Criminal Enforcement in the Tariff Context

Practical Guidance for Companies, Corporations, and Executives

Barnes & Thornburg: Scott Hulsey, Partner, Latin America Practice Group Co-Chair Washington, D.C. Atlanta; Adetayo Osuntogun, Partner, Washington, D.C.; Emily Harake, Associate, Nashville

The Department of Justice recovered a record $6.8 billion under the False Claims Act in fiscal year 2025, and a growing share of that enforcement is aimed at ordinary importers. In May 2026, DOJ secured the largest customs-related FCA settlement in the statute's history, $549.5 million. By August, it had grown its new Fraud Division to roughly 500 attorneys, with a section built specifically to prosecute similar cases.

For years, tariff compliance sat with the customs broker and the back office, treated as an administrative cost of doing business. That assumption no longer holds. A misclassified HTS code, an inflated country-of-origin claim, or an undervalued invoice is no longer just a duty underpayment — it's a potential false claim — carrying treble damages, per-claim penalties, and, increasingly, criminal charges against the executives who signed off.

Our new guide, "False Claims Act and Criminal Enforcement in the Tariff Context: Practical Guidance for Companies, Corporations, and Executives," examines how this enforcement wave took hold, and what companies and their executives can do to stay out of its path.

Read the guide here

Inside the Guide

Our international trade and white collar practice groups break down the civil and criminal frameworks driving these cases, the enforcement typologies behind recent settlements, misclassification, undervaluation, country-of-origin fraud, AD/CVD evasion, and forced labor violations, and the full roster of agencies now coordinating to pursue them, from CBP and Homeland Security Investigations to DOJ's new Global Trade and Commerce Enforcement Section.

We pair that analysis with a practical playbook:

• The red flags that invite scrutiny

• The compliance controls DOJ expects to see

• The self-disclosure calculus companies face once a problem surfaces

• A ready-to-use model compliance checklist and CID/subpoena response protocol

Our core message: tariff compliance is no longer a back-office function, it's a fraud-risk function, and it needs to be treated that way at the board level. Companies that build real compliance infrastructure now are far better positioned than those that wait for a subpoena to start asking the right questions.

The EU Update is a monthly TerraLex newsletter developed by Gecić Law’s EU practice in Brussels, providing timely insights into key EU legislative and policy developments impacting clients doing business across the European Union’s 27 Member States and 450 million consumers.

The fourth issue focuses on three significant regulatory developments: new EU foreign investment screening rules, making FDI review an increasingly important part of cross-border deal planning alongside merger control and the Foreign Subsidies Regulation; new Cyber Resilience Act reporting requirements, requiring manufacturers to report certain cybersecurity incidents and actively exploited vulnerabilities within 24 hours; and the Packaging and Packaging Waste Regulation, which introduces new compliance responsibilities for businesses placing packaged products on the EU market.

Designed as a valuable resource for cross-border advisory work, the EU Update combines high-level analysis with practical insights, helping members identify how evolving EU requirements may affect clients while connecting them with TerraLex experts across Europe for deeper, jurisdiction-specific guidance.