Apple Faces Ongoing Controversy Over False Advertising Claims

Apple has strongly refuted allegations of false advertising regarding its artificial intelligence (AI) system, Apple Intelligence, as a domestic civic group has officially urged the Fair Trade Commission (FTC) to disclose investigation materials.

On May 11, the Seoul YMCA's Civic Mediation Office criticized Apple’s official statement released on May 8, interpreting it as a denial of violations of the Fair Labeling and Advertising Act. They stated, "It is absurd for Apple to discuss negotiations while ignoring the FTC's request for documentation for over a year."

The YMCA added, "Before discussing negotiations with the FTC, Apple should prioritize communication with consumers."

On the same day, the Seoul YMCA sent a letter of inquiry to the FTC to hear updates on the situation. They specifically questioned why the FTC has not taken action despite Apple failing to submit requested documents for over a year, what discussions are currently ongoing with Apple, and what future investigation plans are in light of a recent compensation agreement reached in the U.S.

The YMCA stated, "We plan to transparently disclose the FTC's responses and will continue to monitor and act strongly to prevent Apple from misusing the FTC's consent decree system to gain immunity with insufficient content."

Previously, the Seoul YMCA pointed out that the FTC has not reached a clear conclusion on Apple’s alleged violations of the Fair Labeling and Advertising Act, which were reported in March of last year.

In response, Apple issued a statement on May 8, strongly opposing the YMCA's claims and asserting, "We will continue to engage in discussions with the Fair Trade Commission regarding this matter."

Meanwhile, Apple recently reached a settlement of $250 million (approximately 360 billion won) to resolve a class-action lawsuit in the U.S. According to Reuters, Apple faced a lawsuit from American consumers in 2024 for allegedly misleadingly advertising its Apple Intelligence and next-generation Siri features to sell iPhones.