The Fair Trade Commission revised its review guidelines to deem ads that hide consumer safety information or fail to disclose sponsorships as "deceptive labeling or advertising."
On the 30th, the Fair Trade Commission said it will enforce the revised "guidelines for reviewing deceptive labeling and advertising" starting today. The revision clarifies the types of "deceptive ads" under the Act on Fair Labeling and Advertising to increase predictability in applying the law and prevent consumer harm.
Two new types were added in the revision. First, acts that conceal or omit important information related to the safety of goods or services are included as deceptive labeling or advertising. A representative example specifies cases in which humidifier disinfectant products contained toxic substances but failed to disclose that fact.
The Fair Trade Commission also defined as a type of deceptive ad any act of recommending or introducing while failing to disclose that economic compensation, such as money or goods, was received from an advertiser. For example, this applies when corporations promote their own products on a social networking service (SNS) account they operate directly but present it as if a third party is making the recommendation.
The Fair Trade Commission also added examples, based on recent decisions, such as false limited-sale phrases that pressure consumers—like "ends today" and "00 minutes left"—that hide the fact the same conditions remain continuously available for purchase.
An official at the Fair Trade Commission said, "With this revision, businesses will more clearly recognize the scope of deceptive labeling and advertising, which will reduce unnecessary legal violations and help protect consumer trust."