That would be mis-selling in the UK, misrepresentation in most legal systems or at the very least false advertising.
If a particular legal system is not capable of (or willing to) enforce descriptive standards in trade (like say China) that then it won't be enforcing any other labelling regulation either and the notion of "marking" art as AI and consumer choice is foiled.
If you cannot enforce labelling of AI art, then it seems unlikely you would be able to ban it either. It will always exist, the genie is out of the bottle. Your best plan is to educate a discerning customer base and you cannot really do that without examples of the thing you are trying to wean them off.
All this presuming you even have the moral right to cancel another's creative efforts. Why stop at AI, "I" don't like abstract art as it detracts from the "proper stuff" we should ban that too. Oh an Jazz as well, bloody hipsters. Frankly Picasso was a bit suspect, so maybe we should include surrealism... etc.