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.

Deceptive Advertising on Internet Shopping Malls

In June 2011, the KFTC imposed corrective orders and monetary fines against certain internet shopping mall operators for deceptive advertising. The practice at issue was displaying certain products as "premium products," "best sellers," or "popular products" only if the sellers of those products had paid extra for such labeling.