10/24/2011

Korea Fair Trade Commission to Enforce Mislabeling and Misleading Advertisement Law in Korea: May the Seller Beware

In June of 2011, the Korea Fair Trade Commission (KFTC) has begun to enforce Notification of the Standards on Imposing Penalties on Companies that Act on Fair Labeling and Advertising.  The KFTC is very aggressive in enforcing law.  We suspect to see a few public cases this year concerning mislabeled foreign products

A penalty may be imposed only if: 
  1. The Act was violated on two or more occasions in a three year period; or
  2. Serious harm is realized by customers; or
  3. Seller engages in prohibited acts that are intentional or are a clear violation of law (typical vague catchall language).
We have run into a few companies over the years that were exporting products from a particular country, but the country of origin of the product was actually a third country.  Check your labeling an insure that your labels reflect the proper quantity, quality, ingredients and country of origin.  
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SeanHayes@ipglegal.com