True
South Korea's Fair Trade Commission has drawn up advertising guidelines on AI products and services, warning that labeling ordinary products with "AI" prefixes — such as "AI lawyer" or "AI mat" — can amount to false or exaggerated advertising if the products do not actually use AI technology.
According to the guidelines, companies must be able to substantiate AI-related claims in their advertising. Attaching the "AI" label to products or services whose core functions do not involve AI technology — for example, an "AI lawyer" that is not based on actual AI systems, or an "AI mat" with no genuine AI functionality — may be treated as deceptive or exaggerated advertising under fair labeling and advertising rules.
The Fair Trade Commission published the guidelines as consumer interest in AI-enabled products grows and marketers increasingly attach AI branding to a wide range of goods and services. The commission's guidance document was made available on its official website.
Under the guidelines, advertisers are expected to demonstrate that advertised AI functions are real and material to the product. Exaggerating AI capabilities, or using AI terminology where no AI technology is involved, falls within the scope of false and exaggerated advertising that the commission can sanction.
The move reflects a broader regulatory effort to keep AI marketing claims in line with actual product performance as AI features spread across consumer and professional services in Korea.
The claim that the Fair Trade Commission established AI advertising guidelines cautioning against careless use of terms such as "AI lawyer" and "AI mat" as potential false or exaggerated advertising is true.
Verdict: True