Going forward, when advertising that new technologies such as artificial intelligence (AI) have been applied, there must be demonstrative evidence to prove performance.
The Korea Fair Trade Commission said on the 2nd it will implement a revised notice titled "Operating guidelines on substantiation of labeling and advertising content," centered on these measures. The implementation period begins on the 3rd.
Through the revision, the Korea Fair Trade Commission (FTC) clarified that prior substantiation is required for products and services that emphasize AI performance. If the Korea Fair Trade Commission (FTC) determines that substantiation is necessary for a specific advertisement, it plans to separately request related materials from the business. A business that is asked to submit such materials must provide them to the Korea Fair Trade Commission (FTC) within 15 days.
In cases of force majeure such as natural disasters, mergers and acquisitions, commencement of rehabilitation proceedings, or bankruptcy, substantiation materials may be submitted within 15 days from the day the grounds for extension cease. If there is insufficient substantiation or none is submitted at all, and the Korea Fair Trade Commission (FTC) orders the ad to stop but it continues, fines of up to 100 million won may be imposed.
An official at the Korea Fair Trade Commission (FTC) said, "We will encourage businesses to secure objective and reasonable substantiation materials in advance that correspond to the ad content before advertising products and services," adding, "For ads without submitted substantiation materials, swift suspension measures will help prevent the spread of consumer harm."