MeitY Cuts Deepfake Label Requirement for Films and Advertising to 10%

The Ministry of Electronics and Information Technology (MeitY) is set to exempt the film, advertising, and allied creative sectors from the mandatory 10% deepfake labelling requirement in its draft regulations. The decision comes after industry feedback highlighting concerns over creative freedom and production workflows, providing relief to filmmakers and advertisers.

MeitY’s Revised Approach to Deepfake Labelling

According to official sources, MeitY plans to exclude the film, advertising, and related creative industries from the 10% mandatory labelling rule in its upcoming deepfake regulations. This move follows extensive consultations and stakeholder feedback, aiming to balance the regulation of synthetic content with the practical realities of media production.

Officials indicated that the final rules are expected to be notified shortly, reflecting a calibrated regulatory approach that addresses both transparency concerns and the operational challenges faced by creative professionals.

Origin of the 10% Deepfake Labelling Rule

MeitY’s draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, were released on October 22, 2025, for public consultation. For the first time, the law legally defined synthetically generated information under Indian IT law.

The core objective of the draft was to ensure transparency by clearly labelling deepfakes and AI-generated audio, visual, and image-based content, which have increasingly been used in malicious ways. Under the draft rules:

• Platforms or intermediaries distributing synthetic material were required to affix a visible, permanent, and non-removable label covering at least 10% of the screen or audio segment.

• Significant social media intermediaries were mandated to obtain declarations from content creators and implement verification tools.

These measures were intended to help users distinguish synthetic content from authentic material and hold platforms accountable. The government cited growing concerns over malicious uses of deepfakes, including defamation, impersonation, misinformation, and fraud, particularly involving prominent individuals.

Film and Advertising Community Raises Concerns

The film and advertising industries voiced strong objections to the 10% labelling rule, calling it overly broad and impractical for creative and technical environments. Key concerns included:

• Disruption of viewing experience for long-form content, commercials, and VFX-heavy sequences.

• Potential visual distortion affecting artistic expression and brand messaging, especially when AI is used as a supportive tool rather than for deception.

• Routine post-production activities, such as colour grading, voice clean-up, dubbing, and background replacements, would have fallen under the labelling mandate, blurring the line between harmful deepfakes and legitimate AI use.

Industry experts suggested alternative disclosure methods, such as opening or closing credits or subtle notices similar to content ratings, which would maintain transparency without affecting the artistic integrity of films and advertisements.

Additionally, stakeholders highlighted the risk of stigmatising AI-enhanced works, which could affect audience perception and the commercial value of creative content. Persistent on-screen AI warnings, they warned, might frame such material as inauthentic or lower quality.

Government Consultation and Industry-Friendly Outcome

Officials emphasised that exempting the film, advertising, and similar sectors from the 10% labelling requirement demonstrates MeitY’s consultative approach in finalising regulations. The decision reflects the government’s willingness to engage with industry stakeholders and adapt policies to suit sector-specific realities.

"The decision to exempt these sectors shows that a consultative process helps finalise regulations and that the government engages with the industry with an open mind," officials said.