MALTA Law and Practice Contributed by: Karl Tanti and Christine Borg Millo, AE Legal
10. Product Compliance 10.1 Regulated Products Alcohol
category. While the latter are not as heavily regulated as high-risk systems, they must still adhere to certain transparency obligations to ensure users are aware they are interacting with an AI system. Specifically, Article 50 of the AI Act mandates that pro - viders ensure AI systems intended to interact directly with natural persons are designed and developed in such a way that the natural persons concerned are informed that they are interacting with an AI system, unless this is obvious from the context. 9. Web 3.0 9.1 Cryptocurrency and Non-Fungible Tokens (NFTs) The advertising, marketing, and sale of cryptocur - rency and non-fungible tokens (NFTs) are subject to specific regulatory requirements designed to ensure transparency and protect consumers. The Malta Digital Innovation Authority Act (Chapter 591) establishes the Malta Digital Innovation Authority (MDIA) as the regulatory body overseeing blockchain- related activities, including cryptocurrency and NFTs. Under this framework, any advertising, whether visual or auditory, that suggests recognition or endorse - ment by the MDIA is strictly prohibited unless explicit authorisation has been obtained. This restriction is reinforced by the Consumer Affairs Act, which pro - hibits misleading or deceptive advertising practices across all platforms. Additionally, Initial Virtual Financial Asset Offerings (IVFAOs), commonly known as Initial Coin Offerings (ICOs), are regulated under the Virtual Financial Assets Act (Chapter 590). Marketing and promotional activi - ties for such offerings must comply with strict trans - parency requirements. 9.2 Metaverse While there are no specific laws exclusively governing advertising within the metaverse, existing legal frame - works apply to such advertising activities, including provisions of the Consumer Affairs Act (Cap. 378), the Malta Digital Innovation Authority Act (Cap. 591), and the Virtual Financial Assets Act (Cap. 590)
Advertising alcoholic beverages is permitted but heav - ily regulated under S.L. 350.24, which sets restrictions primarily aimed at protecting minors. This includes defining permissible advertising times, prohibiting content that could unduly influence vulnerable groups, regulating the use of humour, and imposing require - ments related to safety messaging. Tobacco All advertising and promotion of tobacco products is prohibited under S.L. 315.06. Visual representations of tobacco products, such as images of cigarettes, are only allowed on vending machines for product selection purposes and must include mandated health warnings. Medical Products and Services Advertisements in this sector are tightly controlled under S.L. 350.30, the Medicines Act and S.L. 458.32. All medical advertising must promote rational use, provide legally required information, avoid mislead - ing claims, and only feature products authorised for sale in Malta. Advertising prescription-only or psycho - tropic narcotic medicines to the public is prohibited, and promotions cannot guarantee results, make supe - riority claims, include endorsements, or target minors. Each medical advertisement is assessed individually based on the product and the intended audience. Food Food advertising is governed by S.L. 449.46, which requires clear labelling of product names, ingredients, quantities of key components such as sugar and fat, and best-before dates. Currently, there are no specific restrictions on advertising foods high in fat, salt, or sugar, but transparency and clarity of information are mandatory. Cannabis Following partial legalisation for medical and recrea - tional use, cannabis advertising remains strictly pro - hibited under Legal Notice 56 of 2023 and relevant provisions in the Drug Dependence (Treatment not Imprisonment) Act (Chapter 537). Direct or indirect promotion aimed at stimulating demand is forbidden,
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