KFTC requires evidence for AI performance claims from Sept. 3

  • KFTC will require evidence before businesses advertise AI and other emerging-technology claims.
  • Businesses must submit requested substantiation materials within 15 days.
  • Missed deadlines may trigger immediate suspension and fines up to 100 million won.

The Korea Fair Trade Commission (KFTC) will implement revised Operational Guidelines on Substantiation of Labeling and Advertising Claims on Sept. 3, requiring businesses to secure objective substantiation materials before advertising products or services that promote artificial intelligence (AI) or other emerging technologies. The KFTC may separately request materials for a specific advertisement, and businesses must submit them within 15 days. Extensions will be limited to four categories—natural disasters, bankruptcy and rehabilitation proceedings, seizure of books and evidentiary documents, and other disasters—and materials must be filed within 15 days after the cause ends. Failure to meet the extended deadline may trigger an immediate suspension order. Failure to submit the materials or comply with a suspension order may result in an administrative fine of up to 100 million won, approximately $73,000. The revision also identifies consumer-influencing claims such as improving concentration and memory, being harmless to the human body, or specifying percentage reductions or feather content as priority substantiation targets. A new Business Self-Inspection Checklist is intended to help companies assess requirements before advertising.

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