Notable Cases Under The Korean Advertising Act - 2014
In Korea, advertising is primarily regulated by the Fair Labeling and Advertising Act (the "Advertising Act"). The Korea Fair Trade Commission ("KFTC") enforces the Advertising Act with a range of possible sanctions, including corrective orders and monetary fines. Assessment of sanctions can be challenged through administrative proceedings. Below is a summary of some of the notable KFTC decisions and court judgments rendered in 2014 under the Advertising Act.
False Labeling of Humidifier Disinfectants
In July 2012, the KFTC issued a corrective order and monetary fines against manufacturers of humidifier disinfectants for stating on the product labeling that the products "can be used with confidence as it contains ingredients safe to humans[,]" when in fact they were not so safe. After a number of reported deaths caused by the disinfectants, the Korea Centers for Disease Control launched a large-scale investigation, which resulted in epidemiological findings that the humidifier disinfectants were a factor in causing lung diseases.
After considering the manufacturers' challenge of the KFTC's imposition of sanctions, in August 2014, the Supreme Court ruled that the above product labeling was unsupported by objective data and false or exaggerated, and thus dismissed the manufacturers' challenge.
Deceptive Advertising on Internet Shopping Malls
In June 2011, the KFTC imposed corrective orders and monetary fines against certain internet shopping mall operators for...
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