The move addresses misleading AI claims in home appliances such as air coolers and refrigerators
A domestic home appliance company recently changed its promotional wording for a newly released air cooler from claiming it had an “artificial intelligence (AI) temperature control function” to stating it had an “automatic temperature control function” after the Korea Fair Trade Commission (KFTC) raised suspicions of “AI washing.” AI washing refers to the practice of marketing products as utilizing AI technology even when they have little or no actual connection to AI.
AI washing has emerged as a phenomenon due to the widespread attention on AI technology and has become a global issue. In South Korea, the Lee Jae-myung government has declared entering the “top three AI powerhouses” as a national policy goal and pledged to support related companies and products. Amid this, voices calling for regulations to prevent companies from freeloading on government policies are gaining traction. In response, the KFTC plans to establish guidelines for labeling and advertising to regulate AI washing next year.
◇ Claimed to apply AI technology… but turns out to be simple automation
The KFTC announced on the 7th that it found 20 suspected cases of AI washing after monitoring home appliance and electronic products sold by domestic e-commerce platforms in collaboration with the Korea Consumer Agency.
Key examples include an “AI washing mode” that only operates when laundry weighs less than 3 kg, “AI air purification” that activates only under specific conditions, and an “AI refrigerator” that automatically adjusts based on internal temperature. While the names suggest AI technology, most cases were found to be merely automated functions.
Companies attempt AI washing because consumers are willing to pay more for products marketed as AI-enabled. According to a five-day online survey of 3,000 consumers who understood the concept of AI, 57.9% of respondents answered they were willing to purchase AI products even if they were more expensive.
◇ KFTC prepares sanctions for AI washing… U.S. already enforces regulations
The KFTC views AI washing as distorting consumers’ rational choices and potentially falling under “exaggerated or deceptive advertising” under the Display and Advertising Act. Accordingly, the KFTC plans to establish guidelines related to AI washing next year in collaboration with the consumer agency.
In the U.S., AI washing has been a social controversy for years, prompting regulatory agencies to impose sanctions. A representative case that raised awareness was Amazon’s “Amazon Go,” a system that automatically calculates purchases when customers leave a store with items. Amazon claimed, “Thousands of sensors and cameras automatically recognize and calculate what customers purchase.”
However, in April of last year, the IT-focused media outlet The Information reported that Amazon had hired approximately 1,000 employees in India to operate the cashier-less payment system. Amazon stated, “Indian workers only performed inspection tasks.” However, Amazon’s explanation of a “cashier-less unmanned store” lost credibility.
The U.S. Federal Trade Commission (FTC) filed a lawsuit last year against “Air AI,” a corporate coaching service provider, alleging it engaged in deceptive practices prohibited by the Federal Trade Commission Act. According to the FTC, the company marketed its program as “AI replacing human salespeople” and sold high-priced programs, but in reality, it only provided basic functions such as making calls and scheduling appointments.
