South Korea's FTC seeks public input on draft rules to curb AI washing in ads

South Korea's antitrust authority, the Fair Trade Commission, has launched a public consultation lasting until Nov. 11 on draft guidelines designed to stop "AI washing" in marketing. The proposed rules target advertisements that overstate a product's artificial-intelligence features, which can mislead consumers into believing the items are more accurate, reliable or advanced than they truly are. The guidance outlines four main types of potential infractions under the Act on Fair Labeling and Advertising and provides a self-assessment tool and a FAQ sheet for businesses.

Illustrative cases include electric hot-water heating mats, cat litter boxes, pillows and weight-control shakes marketed as AI-enabled, as well as the use of AI to create virtual personas and fabricated online reviews for food and pharma products aimed at older users. While the guidelines are not legally binding, the FTC argues they will help firms stay compliant, enable consumers to make informed choices, and promote fair competition in AI-related markets.