Spain’s Council of Ministers has approved a draft law that could see artificial intelligence (AI) companies fined up to €35 million for failing to label AI-generated content correctly. The measure aims to combat the spread of “deepfakes” and misinformation.
The bill classifies incorrect AI labelling as a serious offence. Companies violating the law could face penalties ranging from €7.5 million to €35 million or between 2 and 7 per cent of their global turnover. However, startups and medium-sized businesses might receive lower fines, according to the legislation.
“Artificial intelligence must help us improve the world we live in,” Spain’s Digital Transformation Minister Oscar Lopez said on Instagram. He emphasised that AI should be used for medical research, disaster prevention, and traffic improvements, rather than spreading “hoaxes, lies, and defamation.”
The Spanish law aligns with the EU AI Act, a regulatory framework that enforces strict transparency rules on high-risk AI systems. The bill now awaits approval by Spain’s Congress of Deputies before becoming law.
Beyond AI labelling, the draft law also bans subliminal techniques that manipulate decisions without consent, such as chatbots encouraging gambling addiction. It also prohibits AI systems from classifying individuals based on race, politics, religion, or sexual orientation.
Additionally, companies using biometric data for employee monitoring without human oversight could face fines between €500,000 and €7.5 million. The government may even withdraw AI systems responsible for severe accidents, including fatalities.
