Targeting AI-Washing in Advertising

The Fair Trade Commission's initiative addresses a growing regulatory concern: products marketed under the AI banner that lack substantive AI features. Under the planned criteria, regulators will assess whether a company's use of the term "AI" in advertising and product labeling is misleading to consumers, focusing on cases where the label serves as marketing rather than reflecting genuine AI capability.

The move follows the Korean expression used in domestic coverage — "이름만 AI 막는다," or "blocking AI in name only" — reflecting the commission's stated intent to distinguish between products with real AI functionality and those that merely borrow the term.

Regulatory Context

The commission's action comes as AI-related claims proliferate across consumer hardware, software and services from Korean companies including Samsung Electronics, LG, Naver and Kakao. False or exaggerated advertising falls under the Fair Trade Commission's existing enforcement authority, and the new criteria are intended to give the agency a clearer basis for judging when an AI claim crosses the line.

Details of how the criteria will be applied — including specific thresholds for what qualifies as genuine AI functionality — were not available.

Conclusion

The claim that the Fair Trade Commission is preparing judgment standards to block "AI in name only" advertising is, on balance, Mostly True.

Verdict: Mostly True