Business & Technology
EU AI labelling rules pose retail risk for UK firms
Photoroom has warned that new European Union rules will require businesses to label AI-generated content or face fines, affecting online retail and digital image workflows.
The changes stem from Article 50 of the EU AI Act, which requires AI-generated or manipulated content to be clearly identifiable. The measure introduces mandatory disclosure rules for synthetic visuals and other altered content used in commercial settings, with penalties of up to £13 million or 3% of global turnover for non-compliance.
This creates a new compliance issue for UK businesses trading across European markets. While AI use has spread quickly across British business and consumer settings, the UK does not yet have an equivalent mandatory labelling regime for AI-generated material, creating a gap between domestic practice and EU obligations.
Photoroom, which offers AI-based photo-editing tools, said the issue is becoming more urgent as AI-generated images become more common in marketplaces and eCommerce. The company has more than 300 million users worldwide and processes more than seven billion images a year.
Research it cited suggests the broader shift is already well advanced. McKinsey data shows that 88% of organisations now use AI in at least one business function, while Ofcom reported that 31% of UK adults have used generative AI tools, up from 23% a year earlier.
Use has also risen sharply on consumer platforms. ChatGPT recorded 1.8 billion UK visits in the first eight months of 2025, according to figures referenced by Photoroom, underlining how quickly generative AI tools have become part of routine use.
Retail impact
The practical challenge for retailers and marketplaces is deciding how to distinguish between ordinary image enhancement and content that could be classed as synthetic or manipulated. Product photography has long involved some editing, but AI tools now make it easier to alter backgrounds, lighting, shadows and entire scenes, raising questions about when an image shifts from polished to potentially misleading.
Businesses selling across the EU may therefore need to review how product images are created, stored and presented to customers. Visible labels and technical markers are among the disclosure methods expected under the new framework, meaning compliance will extend beyond legal teams to marketing, eCommerce operations and digital production systems.
For platforms handling large volumes of listings, the burden could be significant. Companies using AI-generated product imagery at scale may need systems to track whether images are fully synthetic, substantially altered or only lightly edited, especially when those images influence buying decisions.
Matt Rouif, Chief Executive of Photoroom, said the rules mark a broader shift in how AI content will be treated in business. “As adoption accelerates, the challenge is no longer whether businesses use AI, but how transparent they are about it, with increasing pressure to clearly distinguish between real, enhanced and synthetic content,” he said.
The issue carries commercial as well as legal consequences. Online shoppers already rely heavily on product images to judge quality, fit and authenticity, and stricter disclosure standards could push sellers to be more explicit about how visuals were created.
Operational shift
Businesses will need to rethink how AI-generated visuals are produced, tracked and presented, according to Photoroom. That could mean changes to internal approval processes, metadata handling, marketplace policies and customer-facing disclosures, particularly for companies with cross-border operations.
Photoroom said it supports brands and marketplaces in producing consistent product imagery, and that clearer labelling rules will bring greater scrutiny to those workflows. For many businesses, the compliance task is likely to involve balancing the speed and cost savings of AI tools against the risk of regulatory penalties and customer mistrust.
Rouif said transparency is moving to the centre of the debate around AI-generated visuals. “This introduces enforceable transparency requirements for the first time, creating material legal and operational risk for businesses using AI at scale,” he said.
Lidl has been given planning permission to build its ninth supermarket in Oxfordshire, despite concerns over flooding.
Aldi opened in Didcot in 2015 and has a supermarket at the Jubilee Way roundabout but shoppers in the town have had to wait over a decade for Lidl to follow.
READ MORE: Popular hi-fi shop has closed down
South Oxfordshire District Council has now backed plans by the German retailer for a new supermarket in Abingdon Road.
Former Didcot mayor Mocky Khan said: “This give the residents of Didcot more choice, especially when you consider the cost of living environment we have at the moment.
“The town is growing with more new homes being built, and with more growth it’s good to have a wide variety of supermarkets to fit all budgets,”
The plans for the new supermarket were first submitted in 2024.
Didcot Town Council previously objected to the scheme, on the grounds of a lack of flood risk mitigation measures, along with the county council who said there was “insufficient information”.
The town council noted there are “several flooding incidents in the area, especially when the Marsh Bridge water pumps fail”.
But in a report by planning officers granting permission to the supermarket, those issues have now been addressed by Lidl.
The officers said the proposals “largely accord” with the policies around planning, and more can be done to “break up” the car park with greenery.
Planning officers chose to let Lidl build the new supermarket subject to conditions.
They said in a report: “Balanced against this policy conflict is the fact that this is a previously developed site, which is currently in a dilapidated state.
“The proposals represent a significant improvement on the current underutilisation of the site and on its appearance.
“The National Planning Policy Framework and Local Plan set out significant support for the reuse of previously developed land.
“As stated in the applicant’s planning statement, there have been previous enquiries as to the redevelopment of the site that have not come to fruition.
“Given this, finding a viable use for the site is a clear benefit which I consider to be of substantial benefit.”
Thirty-four residents had objected to Lidl’s plans, highlighting concerns over extra traffic, there being no need for another supermarket in the town and there being more appropriate locations to build in their view.
Didcot already has an Aldi store just off Broadway and a Sainsbury’s, M&S Foodhall and Asda.
The nearest Lidl to the proposed site are in Lupton Road, Wallingford, and Marcham Road in Abingdon.
Three people wrote in to support the new Lidl, recognising the benefits of a discount food store and the further jobs it will create.
Lidl has said its proposals for a Didcot supermarket would deliver 40 full-time equivalent jobs as well as further employment during the construction phase.
No opening date was given by the retailer, while the developer is currently on site progressing with the enabling works.
A spokesman said: “We’ve seen demand for our affordable, high-quality products continue to rise in Oxfordshire, and we are committed to serving more communities in the area.
“Our new store will create around 40 new jobs and build on our continued growth.
“We’re excited to be a step closer to opening this store and thank everyone who has supported us on our journey so far.”
It also said the £12m investment would work with the 6,300 new homes allocated to be built, as per the local plan.
Dalcour Maclaren, a specialist in utilities and infrastructure, announced the news on June 22, following a detailed assessment of its operations, including governance, employee wellbeing, environmental impact, and social responsibility.
James Neil, CEO of Dalcour Maclaren, said: “This is a fantastic achievement for Dalcour Maclaren.
“B Corp status gives us the official badge that recognises everything that matters most to us in our culture, our values, and how we make decisions for our people and our clients. We thrive on doing things differently at DM and B Corp absolutely endorses this.”
The certification means the company meets rigorous standards of social and environmental performance, transparency, and accountability.
Dalcour Maclaren now joins more than 10,000 B Corps worldwide and over 2,600 in the UK, including well-known names such as The Guardian, Innocent Drinks, Patagonia, and The Big Issue.
Chris Turner, CEO of B Lab UK, said: “Welcoming Dalcour Maclaren to the B Corp community is hugely exciting. Its commitment to doing business differently will be an inspiration to others and will help spread the notion that success in business is as much about people and planet as it is profit.”
Dalcour Maclaren operates across the UK and Ireland, supporting major projects in energy, water, transport, and digital infrastructure. The company’s services include land, planning, environment, stakeholder engagement, and geospatial services.
South Oxfordshire District Council’s Cabinet will consider a targeted, one-off reduction in business rates in July, aimed at easing pressure on pubs across the district.
The move follows growing concern that many venues are struggling with rising costs despite their importance as community hubs, rural assets and employers.
Cllr Pieter-Paul Barker, Cabinet Member for Finance and Property Assets, said: “Everyone knows that pubs are experiencing significant financial pressures.
“These venues play an important role in the economy and are vital for ensuring a thriving local community.
“We’re carefully considering how best to provide targeted support for pubs in South Oxfordshire which will both help to strengthen our local and rural economy and safeguard employment in our hospitality sector.”
Council leader Cllr Maggie Filipova-Rivers said: “While this support can’t fix everything, it’s a step in the right direction.
“We’re staying focused on collaborating with our local pubs and partners to provide the practical support and guidance they need right now.”
Details of the proposed business rates support are set out in a report to cabinet on July 2, when a decision is due to be made.
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