Product Advertisement and Award History Fabrication
Sales Suspended Amid Flood of Complaints
No Specific Measures or Regulations Implemented
"Jeo Jeong○○ directly handles both cultivation and harvesting."
Recently, a controversy has arisen over an online shopping mall deceiving consumers with images created by artificial intelligence (AI). As the possibility of this being used as a new method of fraud increases, there are calls for urgent countermeasures.
An image posted by a fruit company operating on an online shopping mall appears to have been AI-generated, leading to consumer complaints. Sales are currently suspended. Naver Smart Store screen.
On the 11th, according to Naver Smart Store and KakaoTalk Shopping, a fruit vendor posted promotional phrases claiming to be themselves, photos of a farmer, and a history of awards received for product quality. At first glance, it looks real, but upon closer inspection, the pointed hands and unnatural nail shapes were all composites. The award history was also false, as Gimcheon City has never held a 'Shine Muscat Evaluation Contest.' Although the vendor's reviews exceeded 900, indicating many sales, once suspicions of false advertising arose, the shopping malls stopped sales.
It was confirmed that there was no problem with the product itself on Naver Shopping, but the sales were judged to have been conducted through improper marketing methods. A Naver Shopping official stated, "After receiving reports from users and reviewing the case, false awards and similar issues violate internal policies. We requested an explanation from the seller and took measures to suspend operations. While many cases use AI-generated images, the images themselves are not problematic, so they cannot be banned. However, if they are used to deceive consumers or misuse product or information delivery, we plan to manage this through monitoring and reporting channels."
A Kakao official said, "After receiving user reports, we immediately suspended sales by the vendor and will strengthen monitoring going forward. We are also internally discussing guidelines to require labeling when AI-generated images are used."
Using AI-generated images for promotion or marketing is not illegal. However, Article 21 of the Electronic Commerce Act prohibits acts that lure consumers or interfere with withdrawal of subscription or contract termination by informing false or exaggerated facts or using deceptive methods. So far, there have been no cases of punishment solely for using AI-generated images.
Attorney Jeon Min-jae of Trinity Law Firm said, "If it is judged that falsehood or deception was used in matters that could influence consumer decisions, it may violate the Electronic Commerce Act. As AI images and similar technologies could become new methods of fraud, consumers need to be cautious."
Experts unanimously called for separate guidelines or regulations. Professor Lee Young-ae of Incheon National University’s Department of Consumer Studies emphasized, "Under the Act on Labeling and Advertising, even without intent to deceive, if there is a possibility of misunderstanding, it can be considered false or exaggerated advertising and thus a legal violation. In a situation where it is difficult to predict how technologies like AI will be used, internal platform guidelines should be established to prevent consumers from making mistaken choices."
Professor Lee Eun-hee of Inha University’s Department of Consumer Studies said, "Legislative measures are needed to allow labeling that images are staged so consumers can make choices with sufficient information. If labeling and advertising are not promptly purified, more consumer damage is inevitable."
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