The seller made exaggerated advertisements. What penalties?

What the Law Says

South Korean law strictly prohibits exaggerated or misleading advertising to protect consumers and ensure fair competition.

The Act on Fair Labeling and Advertising (also known as the Fair Labeling Act) is the main law governing advertising claims. It bans any labeling or advertising that misleads consumers about product quality, performance, origin, or other material features.

Exaggerated advertising — such as claiming unverified health benefits, overstating efficacy, or using vague superlatives without objective support — violates Article 3 of the Act. Such acts are deemed 'unfair labeling or advertising'.

Under Article 45, violators are subject to criminal penalties: imprisonment for up to two years or a fine of up to ₩20 million — or both. The Korea Fair Trade Commission (KFTC) investigates and refers serious cases to prosecutors.

Statutory Text

No person shall engage in labeling or advertising that may mislead consumers into believing that the quality, performance, efficacy, safety, or other characteristics of goods or services are superior to those of others, or that they possess qualities they do not actually have.

— Act on Fair Labeling and Advertising, Art. 3 — Prohibition of Unfair Labeling or Advertising

Statutory Text

Any person who violates Article 3… shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding twenty million won.

— Act on Fair Labeling and Advertising, Art. 45 — Penalty

What to Do

Sources