The Fair Trade Commission filed a complaint with prosecutors against Aekyung Industrial and SK Chemicals for failing to carry out corrective measures in a timely manner despite a finalized court ruling.
On the 29th, the Fair Trade Commission said Aekyung Industrial and SK Chemicals delayed for a long time the execution of a public announcement order, even though their obligation to comply had been finalized by the court's final ruling in connection with the "Home Clinic Humidifier Mate" labeling and advertising case. The commission said it will file a complaint with prosecutors against the two companies and four CEOs on suspicion of violating the labeling and advertising law.
Earlier, in Mar. 2018, the Fair Trade Commission found that the companies' product advertisements violated the labeling and advertising law, and imposed a penalty surcharge along with an order to cease the conduct and publish an announcement in a national daily newspaper. Aekyung Industrial and SK Chemicals filed administrative lawsuits against the commission's actions, but after a prolonged legal battle, the Supreme Court ruled in favor of the commission, finalizing the decision.
However, they still did not carry out the public announcement order in a timely manner after the ruling was finalized. SK Chemicals complied on Mar. 7, and Aekyung Industrial on Mar. 10, which were about seven months and one year and two months late, respectively.
The Fair Trade Commission determined that the corporations and their CEOs violated Article 7 (Corrective Measures), Paragraph 1 of the Act on Fair Labeling and Advertising. The provision stipulates that failure to carry out a public announcement order finalized by a court ruling is subject to criminal punishment.
An official at the Fair Trade Commission said, "Delaying the execution of a public announcement order even after the court's final ruling is a clear violation of the law," and added, "We will continue to thoroughly check whether corrective measures are implemented and will respond strictly according to the law and principles in cases of evasion or delay."