As early as June, if a virtual persona created with artificial intelligence (AI) appears in an advertisement, it must be labeled as ‘virtual persona’. This comes as AI-made ads are increasingly appearing on social media, heightening the likelihood that they will be mistaken for recommendations by real experts such as doctors and professors.

The Korea Fair Trade Commission announced on the 8th that it will issue a 20-day administrative notice for a ‘draft revision to the Review Guidelines on Indication and Advertisement concerning Endorsements and Testimonials’ that would require the label ‘virtual persona’ when advertising with virtual people created by new technologies such as generative AI and deepfakes. This measure follows a recent rise on YouTube and other social networks in cases where AI is used to create virtual experts like doctors and professors to advertise products.

The Korea Fair Trade Commission judged that, although the figure is an AI-created virtual person, consumers may confuse it with a real expert recommending a product.

Under the draft revision, applicable blog and internet cafe posts, photos, and videos must display phrases such as ‘Post containing an AI-generated virtual persona’ and ‘Virtual persona included’.

After gathering opinions from stakeholders and relevant ministries during the notice period and obtaining approval at the full commission meeting, the Korea Fair Trade Commission plans to finalize the revision as early as June. Failure to follow the guidelines may violate the Act on Fair Labeling and Advertising, leading to corrective orders and an administrative fine of up to 2% of the relevant sales.