E‑Commerce Regulation Takes Effect August 1: Groundbreaking Rules for Digital Advertising and AI

Electronic Commerce Business Association (ETID) President Hakan Çevikoğlu emphasized that the new regulations, effective August 1, will trigger a profound transformation across the e‑commerce ecosystem.

Transparency in Digital Advertising and Consumer Protection

The new decree introduces key changes to monitor the frequency and quality of online ads consumers encounter:

■Reference price for discounted sales: The pre‑discount price must be the lowest price recorded in the previous 10 days.

■Clear ad labeling: Influencer posts must include a "advertisement" or "sponsored" tag.

■Penalties for deceptive content: Administrative fines for unfair competition are increased by 20%.

New Labeling Requirements for AI‑Generated Ads

When artificial intelligence (AI) creates visual or textual content that cannot be distinguished from human‑made material, the following must be disclosed:

■"AI‑Generated" label placed beneath the visual/text in at least 12 pt font.

■If AI‑generated characters are presented as real people, an additional warning box must be added to ensure informed consumer decisions.

Obligations for Influencers and Social Media Content Creators

Social media influencers now face stricter duties when promoting campaigns and discounted products:

■Compensation disclosure: Any fee, gift, or commission must be clearly stated at the beginning of the content.

■Transparency window: Campaign terms and duration must be published 48 hours before the post goes live.

Competitive Landscape and Long‑Term Market Implications

Analysts forecast a dual‑edged impact of the regulation on domestic e‑commerce firms:

■Short‑term: Compliance costs may range between 5‑10%, compressing profit margins.

■Mid‑term: Increased transparency could boost consumer trust, raising average basket size by 3‑4%.

■Long‑term: Companies that fully align with the new rules may unlock expansion opportunities in European and Middle Eastern markets.

Fatih Kılıç – Chief Data Scientist, Economic Indicators: The new e‑commerce regulation strengthens consumer protection but should not overlook firms' compliance expenses. The AI‑labeling mandate offers a chance to align with global data‑privacy and transparency standards. Market participants need to manage short‑term cost pressures while focusing on building long‑term consumer trust and international competitive advantage.