The Fair Trade Commission has identified advertising agencies that deceived self-employed individuals into entering advertising contracts by impersonating large platforms or public institutions or inflating contract terms.
On the 16th, the Fair Trade Commission noted that it referred seven advertising agencies engaged in unfair transactions using these methods to the prosecution for investigation.
According to the Fair Trade Commission, the identified companies increased their credibility by impersonating portal platforms or government and public institutions to induce advertising contracts, and then billed the total usage amount stated in the contract without prior notice. There were also numerous cases where they approached consumers by saying, 'You only need to pay a small monthly advertising fee.'
They also guaranteed higher visibility in search results and increased sales when signing contracts but failed to keep their promises or disappeared when self-employed individuals requested contract cancellations, effectively going underground. In cases where consumers requested contract cancellation, there were instances of excessive penalties being charged or refunds being denied.
In particular, the Fair Trade Commission explained that among the seven businesses referred for investigation this time, five were identified as effectively the same company, using identical contracts or operating under the same representative name.
To prevent online advertising damage, the Fair Trade Commission operates the 'Online Advertising Agency Fraud Reporting Center' and is strengthening educational and promotional activities to prevent similar damages from recurring.
A Fair Trade Commission official said, 'Through rigorous law enforcement against fraudulent practices by online advertising agencies and expanding education and promotion for self-employed individuals, we plan to continuously improve so that illegal activities undermining the competitive foundation of the online advertising agency market can be eradicated.'