FTC to collect public opinion on draft guidelines against 'AI washing'

The Fair Trade Commission (FTC) of Korea announced on Thursday that it has initiated a process to collect public input on proposed guidelines aimed at curbing advertisements that exaggerate the use of artificial intelligence (AI) technologies in their products, a phenomenon known as AI washing. The FTC intends to gather these opinions until November 11th, as the number of products claiming AI features has surged, with some allegedly disseminating misleading or deceptive information to consumers.

The FTC explains that the term AI is often used to denote products with advanced technology, which can lead consumers to believe these products are superior in performance and reliability, or to be more willing to pay a premium for them. This trend has prompted the watchdog to advise consumers to remain vigilant about products advertised as having AI features, even when they do not actually incorporate such technologies.

The guidelines under consideration by the FTC pertain to four primary categories of potential violations of the Act on Fair Labeling and Advertising. These guidelines will include a self-assessment checklist and a series of frequently asked questions to assist businesses and consumers in understanding the new standards. Examples cited by the FTC include electric hot-water heating mats, cat litter boxes, and other products that might claim AI functionality but do not truly utilize this technology.