Hello. This is attorney Lee Young-kyung of Cheongchul Law Firm.

On June 23, 2026, the Korea Fair Trade Commission (KFTC) issued an administrative notice of a proposed amendment to the Notification on the Operation of Substantiation for Labeling and Advertising (the “Substantiation Notification”). The key points of the amendment are: ① clarifying that prior substantiation is required for advertisements of AI and other new-technology products; ② specifying the grounds for extending the deadline to submit substantiation materials while shortening the extension period; and ③ preparing and distributing a checklist that businesses can use to self-audit. Because the substantiation system requires advertisers to bear the burden of proof for the “facts” claimed in their advertisements and enables swift determination of legal violations, this amendment is expected to have a significant impact on advertising practice. This column is based on the KFTC press reference materials, and the content may change during the administrative notice procedure.

[Question]

How does this draft amendment to the Substantiation Notification change the scope of “labeling and advertising for which a business must hold substantiation materials,” and on what grounds and to what extent can the submission deadline be extended? What checkpoints should businesses review in advance?

[Answer]

The draft amendment ① explicitly states that advertisements emphasizing AI or other new technologies are subject to prior substantiation, and adds expressions previously flagged in KFTC decisions — such as “enhances focus and memory,” “ingredients harmless to the human body,” “○○% feather,” and “No. 1 in grade improvement” — as examples. ② The grounds for extension are specified as ㍀ natural disasters, ㍁ merger and acquisition, commencement of rehabilitation proceedings, bankruptcy, or similar proceedings, ㍂ seizure or temporary custody of books and documentary evidence by an authorized agency, and ㍃ serious obstruction to business operations due to fire or disaster, and the extension period is shortened from the previous 30 days to within 15 days. ③ The business checklist allows businesses to verify in advance whether their content is subject to substantiation, whether substantiation materials are in place, and whether the judgment criteria for each material are met.

1. Background and Schedule of the Administrative Notice

The KFTC pursued this amendment in three respects: ① clarifying the scope of substantiation materials required for submission, ② specifying the process for requesting and submitting substantiation materials, and ③ enhancing predictability for businesses. This reflects both the market environment, in which products and services emphasizing AI performance continue to be released, and the accumulation of expression types for which substantiation is critically required — particularly relating to the human body, safety, and performance — in past decisions. The administrative notice period runs from June 23 to July 13, 2026, after which the amendment will be finalized and implemented following opinion collection and resolution by the plenary session.

2. Key Amendments

A. Designating AI and Other New-Technology Advertising as Subject to Substantiation; Expanding Examples Based on Past Decisions

The draft amendment newly adds “new-technology-related content” to safety- and environment-related substantiation targets and adds expressions using new technology, such as “safer with artificial intelligence (AI) technology,” as examples. It also includes new examples of body-related expressions such as “enhances focus and memory,” “ingredients harmless to the human body,” and “safe ingredients for the human body”; performance/efficacy/quality-related expressions such as “effect of blocking ○○ harmful ingredients,” “automatic cleaning without the hassle of separate cleaning,” and animal-name, down, and feather ○○% labels on down-product filling. Other content affecting consumer purchasing decisions, including ranking expressions such as “No. 1 in satisfaction,” “No. 1 in grade improvement,” and “No. 1 in speed,” is also explicitly included.

B. Specifying Grounds for Extending the Substantiation Material Submission Deadline and Shortening the Extension Period

The current rule allowed an extension of up to 30 days from the date the cause ceased if a “force majeure event such as a natural disaster” was recognized, but its scope was criticized as ambiguous. The draft amendment, by analogy to Article 76 (Application for Postponement of Investigation, etc.) of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act (국내 독점규제 및 공정거래에 관한 법률 시행령 제76조), specifies the grounds as ① natural disasters, ② merger and acquisition, commencement of rehabilitation proceedings, bankruptcy, or proceedings equivalent thereto, ③ seizure or temporary custody of books and documentary evidence by an authorized agency, and ④ serious obstruction to the business operations of a business or business association due to fire or disaster. Meanwhile, to emphasize the “substantiation-first, advertising-later” principle, the extension period has been shortened from the previous 30 days to “within 15 days from the date the cause ceases.”

C. Clarifying the Basis for an Order to Suspend Labeling/Advertising upon Non-Submission

If a business continues labeling or advertising without submitting substantiation materials within the submission deadline (including any extension), the KFTC may order the business to suspend the labeling or advertising until the substantiation materials are submitted. This makes clear that businesses must secure substantiable materials in advance to actively promote their products, with the goal of preventing the spread of consumer harm through swift suspension of improper labeling and advertising.

D. Establishment of a Business Checklist and Refinement of Substantiation Review Standards

The KFTC prepared and distributed a business checklist so that businesses can clearly recognize the principle that “they must prove the facts they advertise” and can self-audit substantiation methods and judgment criteria. The checklist consists of [Step 1] items to verify before labeling/advertising (substantiation targets, substantiation submission, general requirements, judgment criteria for each material) and [Step 2] items to verify upon receiving a request to submit substantiation materials (submission deadline, submission method, sanctions for non-submission, and handling depending on review results). In addition, testing institutions have been reorganized into “industrial/testing certification field / medical, food, and health field / environment and energy field,” new examples of substantiation materials for academy advertising such as “No. 1 in grade improvement” have been added, and where overseas materials are included, both the original text and a Korean summary (excerpting key points) must be submitted — along with other refinements to the review standards.

3. Implications — Practical Response by Businesses

This draft amendment to the Substantiation Notification provides the following implications for advertising practice. ① Because advertisements emphasizing AI and other new technologies are explicitly codified as subject to substantiation, when launching new-technology products or services, review premised on securing substantiation materials is essential from the advertising-copy stage. ② Although the grounds for extending the submission deadline have been clarified, because the extension period is halved (30 days → 15 days), supplementing materials within a short period may become practically difficult if substantiation materials are not adequately secured in advance. ③ Since a suspension order becomes possible upon non-submission within the deadline (including any extension), the risk that the advertisement itself will be immediately halted increases. ④ The business checklist can serve as a starting point for pre-launch labeling/advertising review and compliance-system development; in particular, expressions related to the human body, safety, environment, new technology, and rankings should be subject to an internal “substantiation-feasibility review” procedure before advertising launch.

Cheongchul Law Firm is composed of attorneys with extensive experience representing corporations in KFTC investigations and hearings in consumer- and advertising-related fields, including the Act on Fair Labeling and Advertising, the Act on the Consumer Protection in Electronic Commerce, and the Monopoly Regulation and Fair Trade Act. If you have questions about pre-review of substantiation materials, pre-review of advertising copy, response to substantiation material submission and extension, or response to suspension orders, please do not hesitate to contact Cheongchul Law Firm.