The Korea Fair Trade Commission (“KFTC”) announced on November 7, 2025 that it identified 20 suspected cases of “AI washing” in coordination with the Korea Consumer Agency (“KCA”), following their monitoring of home appliances and electronic products sold on major online marketplaces in Korea.
After being given the opportunity to explain, the relevant companies voluntarily revised or removed the respective labels and advertisements.
On the same day, the KFTC also released the results of a consumer perception survey assessing how the labeling and advertising of AI-related products affect consumers’ purchasing decisions.
I. CORRECTIVE ACTIONS TAKEN BY THE KFTC
A. False or exaggerated information regarding AI technology
Of the 20 suspected cases of “AI washing” identified through the monitoring, 19 involved either: (i) the use of the word “AI” in the product name even though the technology merely relied on simple sensor functions that cannot be considered AI-based technology, or (ii) the exaggeration of AI functions beyond their actual capabilities in advertisements. Below are examples of cases in which the KFTC ordered companies to make changes.
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A company described a cooling fan’s automatic air volume control system—based on a temperature sensor—as an “AI function” or “AI intelligent mode.”
à The KFTC required the company to revise the expression to “automatic temperature control” or “automatic temperature eco mode.”
A company described a dehumidifier’s automatic humidity control function—based on a humidity sensor—as an “AI function” or “AI dehumidification mode.”
à The KFTC required the company to delete such expressions.
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B. Omitting Limitations of AI Functions
The KFTC also identified one case in which the limitations of an AI function — such as the operating conditions and constraints — installed in a product were not clearly indicated, making it difficult for consumers to recognize such limitations. The KFTC made the company specify the conditions under which the AI function operates.
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Although the AI mode of a washing machine operates only for small loads of laundry, the company failed to disclose such limitation.
à The KFTC required the company to clearly state that the AI mode operates when the laundry load is below a certain level and that the operating conditions may vary depending on the product model and user environment.
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II. RESULTS OF THE CONSUMER PERCEPTION SURVEY
According to the consumer perception survey conducted among 3,000 consumers who were aware of what AI is, more than half of the respondents (57.9%, 1,737 individuals) responded that they would be willing to purchase products equipped with AI technology even if they are more expensive than ordinary products.
Among those who expressed willingness to purchase such products, consumers also responded that they would be willing to pay an average premium of 20.9% over the price of ordinary products.
In addition, 67.1% of the respondents (2,013 individuals) expressed concern that it is difficult to identify whether products marketed as “AI products” actually incorporate AI technology when making purchasing decisions.
III. IMPLICATIONS AND TAKEAWAYS
Based on the cases identified and the results of the consumer perception survey, the KFTC plans to establish guidelines on unfair labeling and advertising related to AI by next year. The KFTC also plans to continue to monitor “AI washing” practices across key product sectors in coordination with the KCA.
Given that the KFTC’s monitoring and enforcement activities may intensify across different products and industries, companies are advised to closely monitor the KFTC’s developments and strengthen their compliance efforts accordingly.
[Korean version]
