Businesses advertising that they have enhanced product performance or safety using artificial intelligence (AI) or other new technologies must secure objective evidence to support their claims in advance. If they fail to submit the required documentation upon request from regulatory authorities, their advertisements may be suspended.
The Fair Trade Commission announced on September 2 that a new operational guideline regarding the proof of advertising content will take effect on September 3.
The proof system for advertising requires businesses to have reasonable grounds for the claims they make in their advertisements. The commission can demand relevant documentation from businesses if there are suspicions of misleading advertising.
The revised guideline clarifies that advertisements claiming to utilize new technologies, such as AI, must also undergo prior proof. For instance, claims like 'safer products through AI technology' must be backed by test results or other supporting evidence.
Expressions identified in previous rulings as needing proof have also been added to the list of major claims requiring verification. These include phrases like 'improves concentration and memory' and 'harmless ingredients.' Advertisements emphasizing rankings or exclusive advantages, such as 'number one in satisfaction' or 'number one in performance improvement,' are also included in the proof requirements.
The procedure for submitting proof has been strengthened. Businesses requested to provide documentation by the commission must do so within 15 days. Acceptable reasons for extending this deadline include natural disasters, mergers or acquisitions, ongoing bankruptcy proceedings, seizure or retention of documents by authorized agencies, or significant business disruptions due to fires or disasters.
The extension period has been reduced from '30 days from the date the reason for extension ceases' to 'within 15 days.' If businesses continue advertising without submitting proof by the extended deadline, the commission can order a suspension of the advertisement until the documentation is provided. Failing to submit proof or comply with an advertisement suspension order may result in fines of up to 100 million won.
A checklist has also been established for businesses to verify their proof obligations before and after advertising. They must ensure they have objective materials such as test results, survey findings, expert opinions, and academic literature, and that these materials are directly related to the actual content of the advertisement.
Regulations on advertisements claiming AI performance are also tightening internationally. The U.S. Federal Trade Commission (FTC) penalized a company last year for advertising that its AI content detection accuracy was 98%, while independent tests showed it was only 53%. This underscores the need for verifiable evidence when advertising specific figures related to accuracy and efficacy, not just the use of AI.
A Fair Trade Commission official stated, 'We will encourage businesses to secure objective and reasonable materials corresponding to their advertising content in advance and swiftly suspend unproven advertisements to prevent consumer harm.'
* This article has been translated by AI.
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