US fashion retailer Rainbow Shops faced public criticism in 2026 after it began using artificial intelligence generated versions of real models in its advertising campaigns. Several fashion models spoke out against the practice, raising concerns about consent, compensation, and the future of creative work in the industry.
The dispute centered on how the AI images were produced. Models said the company generated digital likenesses based on real people and used them in marketing without the arrangements that typically govern the use of a model image. The objections focused on whether the individuals had agreed to the AI versions and whether they were paid for their continued use, questions that have become common as brands experiment with synthetic imagery.
The episode is part of a wider wave of consumer and industry pushback against AI generated advertising. Fashion brand Mango encountered similar complaints after using generative AI to speed up content production, with shoppers questioning the credibility of a brand promoting clothing on models that were not real. Marketing analysts have noted that when audiences cannot tell whether the product or the person is genuine, trust in the campaign can erode.
Rainbow Shops is one of several retailers navigating the backlash as AI tools spread through marketing departments. The reaction underscores the reputational risk brands take on when synthetic imagery replaces human talent, particularly when the people whose likenesses are used object publicly. The incident added to a growing list of documented cases where AI generated marketing content prompted criticism rather than the efficiency companies sought.
Source: Fraud Blocker - https://fraudblocker.com/articles/shocking-ai-fails-by-advertisers