Spain is cracking down on deepfakes

Spain is getting serious about tackling deepfakes and misinformation. A new draft law from the Council of Ministers calls for fines of up to €35 million if AI-generated content isn’t labelled clearly and accurately.

The measure is part of a broader crackdown on unethical AI practices, and it might just make Spain one of Europe’s strictest AI regulators.

The importance of labelling AI-generated content

Artificial intelligence is evolving rapidly, but it’s not always used for the greater good. Deepfakes and online misinformation have sparked alarm, prompting the Spanish government to insist on transparency. Under this proposed law, mislabelling AI-driven posts and products would be considered a serious offence, with fines ranging from €7.5 million to €35 million or 2 to 7 per cent of a firm’s global turnover. That’s a hefty bill, although smaller businesses and startups may face reduced penalties so that innovation doesn’t grind to a halt.

Digital Transformation Minister Óscar López emphasises that AI should solve problems rather than create them, pointing to uses like medical research and urban planning. Spain’s plan also lines up with the EU’s own AI Act, which already imposes strict requirements on high-risk systems.

Spain’s AI bill: Cracking down on subliminal tactics and discriminatory profiling

The law doesn’t just target mislabelling. It also bans AI systems from using subliminal techniques to manipulate people’s decisions without their knowledge. This includes any hidden sounds or visuals aimed at nudging users in the wrong direction. An AI tool that quietly identifies vulnerable gamblers and encourages them to place bets would be off-limits.

There’s also a clampdown on AI-driven discrimination. The bill would prevent software from using biometric data or social media to classify people based on race, religion, political views, or sexual orientation. It’s a response to worries that algorithms could be unfairly profiling groups, especially in areas like predictive policing.

Employers relying on AI to track staff attendance would need human oversight. Those who skip that step risk penalties that could reach €7.5 million or 1 to 2 per cent of their global earnings. Another strict measure allows the government to suspend any AI system linked to serious accidents, such as a fatality.

Next steps for Spain’s AI regulation

Spain’s Congress of Deputies still needs to approve the bill before it becomes law. If they give it the green light, Spain will likely become one of the toughest regulators of AI in Europe. As artificial intelligence continues to develop, Spain seems determined to ensure that these powerful tools are used ethically—and that companies who break the rules face real consequences.

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