Article 1(Purpose) #
The purpose of this Decree is to provide for matters delegated under the Act on Fair Labeling and Advertising and necessary for the enforcement thereof.
[This Article Wholly on Sep. 5, 2012]
Article 2(Method of advertising) #
"Methods prescribed by Presidential Decree" under subparagraph 2 of Article 2 of the Act on Fair Labeling and Advertising mean the use of any of the following media or means:
1. Flyer, pamphlet, sample or ticket;
2. Internet or PC communications;
3. Poster, sign, neon sign, ad balloon or electronic display;
4. Video product, record, books, publication, movie or play;
5. Other products than one’s own product;
6. Other media or means similar to the media or means listed in subparagraphs 1 through 5.
[This Article Wholly on Sep. 5, 2012]
Article 3(Contents of unfair labeling or advertising) #
(1) False or exaggerated labeling or advertising under Article 3 (1) 1 of the Act shall be to label or advertise falsely, or by way of inflating facts.
(2) Deceptive labeling or advertising under Article 3 (1) 2 of the Act shall be to label or advertise through methods such as concealment or understatement of facts.
(3) Unfairly comparative labeling or advertising under Article 3 (1) 3 of the Act shall be to label or advertise oneself or his or her product or service (hereinafter referred to as "product, etc.") as being superior or advantageous in comparison with another business entity, business association (hereinafter referred to as business entity, etc.") or product, etc. of a business entity, etc. without clearly stating the subject or standards of comparison, or without providing objective grounds.
(4) Slanderous labeling or advertising under Article 3 (1) 4 of the Act shall be to slander another business entity, etc. or the product, etc. of another business entity, etc. by labeling or advertising them with contents having no objective basis or to slander them by labeling or advertising unfavorable facts only.
(5) The detailed types and standards of unfair labeling or advertising under paragraphs (1) through (4) may be determined and publicly notified by the Fair Trade Commission. In such cases, the Fair Trade Commission shall consult with the head of a relevant administrative agency in advance.
[This Article Wholly on Sep. 5, 2012]
Article 4(Method of verification) #
(1) If a business entity, etc. intends to conduct a test or investigation, to verify matters concerning facts contained in labels or advertisements that he or she has placed, pursuant to Article 5 (1), he or she shall comply with the following criteria:
1. The method of a test or investigation used for verification shall be an objective and appropriate method such as a method generally recognized in the academia or industry;
2. The test or investigation shall be conducted at a test or investigation agency under statutes, or at a test or investigation agency managed independently from a business entity, etc.; provided, this shall not apply if it is deemed impossible or inappropriate to conduct a test or investigation at a test or investigation agency under statutes, or at a test or investigation agency managed independently from a business entity, etc.
(2) The test or investigation agency managed independently from a business entity, etc. under paragraph (1) 2 shall be a test or investigation agency that does not fall under any of the following: <Amended on Dec. 28, 2021; Dec. 27, 2022>
1. A test or investigation agency operated by a business entity, etc. or an affiliated company of a business entity (referring to an affiliated company under subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act);
2. A test or investigation agency operated by a company that once belonged to the scope of an enterprise group (referring to the scope of an enterprise group under Article 4 (1) of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act) to which a business entity, etc. belongs, but is excluded from the enterprise group pursuant to Article 5 (1) 2 of the Enforcement Decree of that Act.
(3) The Fair Trade Commission may determine and publicly notify the detailed matters necessary for requests for and examination of verification data, measures to be taken based on the result of examination, and other relevant matters in relation to the verification of the contents of the labels and advertisements under Article 5 of the Act.
[This Article Wholly on Sep. 5, 2012]
Article 5(Verification data) #
A business entity, etc. shall, when he or she submits verification data pursuant to the main clause of Article 5 (3) of the Act, attach, to written documents specifying each of the following matters, documents proving the content thereof:
1. Methods of verification;
2. The name of the test or investigation agency, and the name, address and telephone number of the representative (only applicable to cases where a test or investigation is conducted);
3. Contents or results of verification;
4. Where he or she wishes not to disclose to the public any verification data on the ground that it constitutes a business secret, its contents and reason.
[This Article Wholly on Sep. 5, 2012]
Article 6(Public disclosure of verification data) #
(1) The Fair Trade Commission may, where he or she makes available for perusal or discloses to the public any verification data pursuant to the main clause of Article 5 (4) of the Act, do so by summarizing or compiling information necessary for consumers' choice of purchase.
(2) The business secrets under the proviso to Article 5 (4) of the Act shall be the trade secrets under subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act.
[This Article Wholly on Sep. 5, 2012]
Article 7(Procedures for approval for restriction on labeling or advertising by business entities’ organizations) #
(1) In cases where a business entities’ organization intends to obtain approval from the Fair Trade Commission to restrict labeling or advertising of a business entity that is a member of the business entities’ organization pursuant to the proviso to Article 6 (1) of the Act, it shall submit an application form specifying the reasons and details to the Fair Trade Commission.
(2) The Fair Trade Commission shall, when it receives an application under paragraph (1), decide whether to grant approval, and notify the applicant of its decision in writing within 60 days from the date of the application.
[This Article Wholly on Sep. 5, 2012]
Article 8(Method of publication of receipt of corrective order) #
(1) The Fair Trade Commission shall, when it renders an order to a business entity, etc. for publication of the fact that a corrective order has been issued or for corrected advertising pursuant to Article 7 (1) 2 or 3 of the Act, it shall determine the contents, frequency, scale, medium, etc. of the publication or corrected advertising in consideration of each of the following matters:
1. Substance and severity of violations;
2. Duration and number of violations.
(2) When the Fair Trade Commission renders an order for publication of the fact that a corrective order has been issued or for corrected advertising pursuant to paragraph (1), it may require the relevant business entity, etc. to have consultation with the Fair Trade Commission for the wording, etc. thereof in advance.
[This Article Wholly on Sep. 5, 2012]
Article 8-2(Entrustment of business affairs concerning implementation management of consent decrees) #
Pursuant to Article 90 (7) of the Monopoly Regulation and Fair Trade Act applied mutatis mutandis pursuant to Article 7-2 (5) of the Act, the Fair Trade Commission shall entrust the Korea Consumer Agency established under Article 33 of the Framework Act on Consumers (hereinafter referred to as the "Korea Consumer Agency") with the business affairs of inspecting whether a plan to implement a consent resolution is implemented under Article 90 (6) of that Act and requesting the submission of data related to such implementation under Article 90 (7) of that Act.
[This Article Added on Jan. 2, 2024]
Article 9(Requirements for temporary suspension order) #
(1) Cases where an act of labeling or advertising under Article 8 (1) 1 of the Act is obviously suspected to be a violation of Article 3 (1) of the Act shall be any of the following cases:
1. Where labeling or advertising has been placed without the material information publicly notified by the Fair Trade Commission under Article 4 of the Act;
2. Where the verification data required to be submitted under Article 5 (3) of the Act has not been submitted;
3. Where it is obviously deemed to fall under the detailed types and standards of unfair labeling or advertising determined and publicly notified by the Fair Trade Commission pursuant to Article 3 (5);
4. Where it is obviously deemed to be identical or substantially similar to the types of unfair labeling or advertising in light of judicial precedents or rulings.
(2) Cases where labeling or advertising is likely to cause irrecoverable damage to consumers or competing business entities under Article 8 (1) 2 of the Act shall be any of the following cases:
1. Where there is a likelihood of serious harm to the safety of the life or body of consumers, or serious damage to their property;
2. Where there is a likelihood of damage that could make it impossible for a competing business entity to continue business or expose a competing business entity to material managerial crisis.
(3) "Agencies or organizations prescribed by President Decree" under Article 8 (2) of the Act shall mean agencies or organizations falling under any of the following: <Amended on Jan. 2, 2024; Oct. 1, 2025>
1. The Korea Media and Communications Commission under Article 18 of the Act on the Establishment and Operation of Korea Media and Communications Commission;
2. The Korea Consumer Agency;
3. The Korea Press Ethics Commission as an incorporated association and the Korea Advertising Review Board as an incorporated association established under Article 32 of the Civil Act;
4. Other agencies or organizations established under other statutes to review labeling or advertising placed by a business entity, etc.
[This Article Wholly on Sep. 5, 2012]
Article 10(Method of requesting temporary suspension order) #
Consumer organizations, or the agencies or organizations under each subparagraph of Article 9 (3) shall submit to the Fair Trade Commission a written request specifying each of the following matters, in order to request the Fair Trade Commission to issue a temporary suspension order pursuant to Article 8 (2) of the Act:
1. The name of a consumer organization, agencies or organizations, and the name, address and telephone number of the representative;
2. The name of the business entity, etc. who has placed the labeling or advertising;
3. The details of the labeling or advertising that is subject to the temporary suspension order;
4. Grounds for requesting a temporary suspension order.
[This Article Wholly on Sep. 5, 2012]
Article 11(Raising objection to temporary suspension order) #
A person who intends to raise an objection to a temporary suspension order pursuant to Article 8 (3) of the Act shall submit to the Fair Trade Commission a written application, specifying matters such as the subject and details of and the grounds for objection, together with documents needed to prove the grounds for or the details of the objection.
[This Article Wholly on Sep. 5, 2012]
Article 12(Method of calculating penalty surcharge) #
(1) "Amount of sales prescribed by Presidential Decree" under the main clause of Article 9 (1) of the Act means the sales amount, purchase amount or the amount equivalent thereto (hereinafter referred to as "relevant sales amount") of the relevant products, etc. which have been sold or bought during the period of violation by business entities, etc. (hereinafter referred to as "violating business entity, etc.") who engaged in the act of labeling or advertising in violation of Article 3 (1) of the Act.
(2) Matters necessary for the criteria for or method of calculating the relevant sales amount of a violating business entity, etc. under paragraph (1) shall be determined and publicly notified by the Fair Trade Commission.
[This Article Wholly on Sep. 5, 2012]
Article 13(Scope of business entity to whom operating revenue applies) #
"Business entities prescribed by Presidential Decree" under the main clause of Article 9 (1) of the Act mean a business entity who enters the aggregated amount of the price of products, etc. as operating revenues, etc. on financial statements, etc.
[This Article Wholly on Sep. 5, 2012]
Article 14(Cases of no sales amount) #
"Business entities, etc. prescribed by Presidential Decree" under the proviso to Article 9 (1) of the Act mean when a business entity, etc. falls under any of the following: <Amended on Jan. 2, 2024>
1. Business operation has not been commenced, or there is no sales performance record due to business suspension, etc.;
2. Where it is impracticable to objectively calculate the sales because data for the calculation of sales have disappeared or have been damaged due to a disaster, etc.;
3. Where it is impracticable to calculate related sales, since the violation period or the scope of related products, etc. cannot be determined in a final and conclusive manner.
[This Article Wholly on Sep. 5, 2012]
Article 15(Criteria for imposition of penalty surcharge) #
(1) The criteria for imposition of penalty surcharges under Article 9 (1) and (2) of the Act shall be as prescribed in Appendix 1.
(2) Detailed criteria necessary for the imposition of penalty surcharges, other than the matters provided for in this Decree shall be determined and publicly notified by the Fair Trade Commission.
[This Article Wholly on Sep. 5, 2012]
Article 16(Imposition and payment of penalty surcharge) #
(1) The Fair Trade Commission shall, when imposing a penalty surcharge under Article 9 of the Act, give a notice of the penalty surcharge in writing, specifying the type of a violation and the amount of the penalty surcharge.
(2) A person who has received a notice pursuant to paragraph (1) shall pay a penalty surcharge to the receiving institution determined by the Fair Trade Commission within 60 days from the date on which he or she receives the notice. <Amended on Dec. 12, 2023>
[This Article Wholly on Sep. 5, 2012]
Article 16-2(Report by a person who operates voluntary review organization) #
(1) A person who operates a voluntary review organization, etc. (hereinafter referred to as "voluntary review organization, etc.") under Article 14-2 (1) of the Act shall, when he or she files a report with the Fair Trade Commission, do so in writing or by an electronic document, specifying each of the following matters:
1. Name of the reporting person (in cases of a corporation, the name of the corporation and its representative, and in cases of an unincorporated association, the name of the unincorporated association and its representative);
2. Address, telephone number and email address of the reporting person;
3. Subject of review;
4. Criteria for review;
5. Ground for establishment of the voluntary review organization, etc.
(2) An agency or organization falling under subparagraph 1, 3 or 4 of Article 9 (3) shall be deemed to have filed a report under paragraph (1).
[This Article Wholly on Sep. 5, 2012]
Article 16-3(Composition of investigation team) #
(1) The investigation team under Article 16-2 (1) of the Act (hereinafter referred to as "investigation team") shall be comprised of the team leader and the members thereof.
(2) The head of an investigation team shall be a public official belonging to the Fair Trade Commission, and public officials belonging to the Fair Trade Commission and employees belonging to the Korea Consumer Agency designated by the president of the Korea Consumer Agency shall be the members of the investigation team. <Amended on Jan. 2, 2024>
(3) The Fair Trade Commission shall, when it intends to organize an investigation team, shall request the President of the Korea Consumer Agency to designate members of the team in advance, in writing, specifying matters such as the period of investigation, subject of investigation and the number of persons necessary for the investigation. <Amended on Jan. 2, 2024>
(4) The activities of the investigation team including investigation shall be performed under direction and supervision of the team leader.
[This Article Added on Nov. 5, 2013]
Article 16-4 #
Deleted. <Mar. 3, 2020>
Article 17(Criteria for imposition of administrative fines) #
(1) The criteria for imposition of administrative fines under Article 20 (1) through (4) of the Act (excluding paragraph (2) 1 of that Article) shall be as specified in Appendix 2. <Amended on Dec. 4, 2018>
(2) The criteria for imposition of administrative fines under Article 20 (2) 1 of the Act shall be as specified in Appendix 3. <Amended on Dec. 4, 2018>
[This Article Wholly on Sep. 5, 2012]