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

The South Korean Fair Trade Commission (FTC) has initiated a public opinion gathering on proposed guidelines aimed at curbing advertisements that exaggerate the use of artificial intelligence (AI) in products, a phenomenon known as "AI washing." The FTC announced its plan to collect opinions until November 11, as the number of products claiming AI features, some of which allegedly provide misleading or deceptive information, has increased.

The FTC warns that consumers may perceive products with AI features as superior due to the term being associated with advanced technology, accuracy, and objectivity, potentially leading to higher willingness to pay. The commission emphasizes the importance of consumer awareness when encountering products advertised as AI-powered, even if they do not utilize such technologies genuinely.

The guidelines address four key areas of potential violations under the Act on Fair Labeling and Advertising, including a self-assessment checklist and frequently asked questions. The FTC has cited examples such as electric hot-water heating mats, cat litter boxes, pillows, and weight-control shakes marketed as AI products. The commission also expresses concerns over the misuse of AI tools to create virtual personas and fabricated reviews to promote food and pharmaceutical products, particularly targeting older consumers.

While the guidelines are not legally binding, they aim to assist businesses in avoiding advertising law violations, enable consumers to make informed choices, and foster fair competition in AI-related markets.