Fair Trade Commission Fully Enforces 'Substantiation Notice' for AI from the 3rd... Mandatory Pre-Verification for AI and New Technologies Specified

Immediate "Suspension of Advertisement" Order for Non-Submission
Submission Extension Period Drastically Reduced to 15 Days

From now on, companies seeking to promote product performance using cutting-edge technologies such as artificial intelligence (AI) will be required to have objective, pre-verified evidence. Authorities have also put an end to the practice of stalling by repeatedly extending the deadline for submitting such materials; if documentation is not submitted without justifiable reason, an immediate order to suspend the advertisement will be issued.

The Korea Fair Trade Commission announced that, starting September 3, 2026, it will enforce an amended “Notice on the Operation of Verification for Labelling and Advertising Claims,” which clarifies the obligation to substantiate advertising for new technology products such as AI and greatly reinforces the submission procedures. Amid a surge in AI-driven marketing exaggerating technological capabilities or promoting baseless innovations, the intention is to proactively establish regulatory standards for such practices across industries.

The core of this revision is the institutionalization of the "verify first, advertise later" principle. The previous regulations broadly defined the subjects for verification requests, such as safety, environment, or performance, making it difficult to keep pace with rapidly evolving high-tech marketing. With the amendment, the Fair Trade Commission has explicitly designated "matters related to safety, environment, or new technologies" as the main targets for verification requests, and has specifically identified expressions such as "safer with AI technology" as prime examples requiring substantiation. Furthermore, products marketed for concentration enhancement, ingredients promoted as harmless, down product fill rates, and superlative rankings such as “No. 1 in academic improvement” in educational institutions have also been included as subjects for thorough review.

This also puts a stop to the tactic of evading sanctions through delayed submission. Until now, ambiguous reasons such as natural disasters could be cited to postpone the submission deadline to up to 30 days after the cause had been resolved, undermining the system's effectiveness. The amended rules strictly and specifically limit valid extension reasons to cases such as mergers and acquisitions, corporate rehabilitation or bankruptcy proceedings, accounting record seizures, and disasters including fire or natural catastrophes.

The permitted extension period has also been halved to "within 15 days from the resolution of the cause." If a business fails to submit the required substantiation within the deadline but continues advertising, the Fair Trade Commission can now immediately issue an order to suspend the labelling or advertising. Failure to submit documentation or comply with suspension orders may result in a penalty of up to 100 million won.

Alongside its regulatory tightening, the Fair Trade Commission has introduced and distributed a "Self-Assessment Checklist for Businesses" to enable companies to review their own verification systems before executing advertising campaigns. By having companies independently check the objectivity and independence of testing agencies, the accreditation of certification bodies, and the academic reliability of research literature, the Commission aims to promote self-regulation in the market and prevent consumer harm from unfair advertising at its source.

This content was produced with the assistance of AI translation services.