True
South Korean regulators have drawn up AI advertising guidelines stating that loosely labeling products or services as "AI" — such as calling something an "AI lawyer" or "AI mattress" without genuine AI functionality — amounts to false or exaggerated advertising.
The guidelines address the growing practice of attaching the "AI" label to products and services whose AI capabilities are minimal or nonexistent. Under the rules, using terms like "AI lawyer" or "AI mattress" without substantiation is treated as deceptive or inflated advertising subject to regulatory action.
The guidelines define when an AI claim is permissible and require advertisers to be able to substantiate that the advertised product or service actually incorporates AI technology in a meaningful way.
The guidelines were prepared amid rising consumer complaints and regulatory concern over indiscriminate AI branding as AI products proliferate across industries. The rules give regulators a clearer basis for penalizing advertisers who misuse the label.
Specific penalty amounts and the implementation timeline remain unconfirmed in the available information.
The claim that using labels such as "AI lawyer" or "AI mattress" without genuine AI functionality constitutes false or exaggerated advertising under the newly prepared AI advertising guidelines is True.
Verdict: True