How to respond to commercial advertisements, what should we do?
Article posted in 2025-04-21 17:53:36 | VEAT
Law firm Veat received a request from Company A (hereinafter referred to as “the client”) and reported the client, who violated the “Act on Promotion of Information and Communication Network Utilization and Information Protection, etc.” (hereinafter referred to as “the Information and Communication Network Act”) and the “Act on Fair Labeling and Advertising” (hereinafter referred to as “the Fair Labeling and Advertising Act”), to the Korea Internet & Security Agency (hereinafter referred to as “KISA”) and the Fair Trade Commission.
Marketing in the digital environment has become an essential element of business activities. Advertising through email, text messages, and SNS has become an effective means of expanding touchpoints with customers, but it is also an area where failure to meet legal requirements can lead to significant risks. Recently, there has been an increase in cases of reporting violations of the Information and Communication Network Act and the Fair Labeling and Advertising Act, and regulatory agencies are responding with strict standards.
Advertising information for profit means information sent with the purpose of profit to introduce products or services or to induce purchases. Introducing new product features, user reviews, or success stories, company awards, certifications, linking to your own website or shopping mall, and other promotional information can all be considered advertising information. Even though it may appear to be “informative content” on the surface, if the purpose is to seek profit, it will be classified as “advertising information” under the law.
Article 50 of the Information and Communication Network Act explicitly requires prior consent and the inclusion of certain notices when transmitting such advertising information. To transmit advertising information to recipients, prior explicit consent from the recipient must be obtained, and sending advertising without consent may be deemed illegal. In addition, the Information and Communication Network Act mandates that advertising information clearly state that it is advertising and include the sender’s contact information and opt-out method. If these procedures are not followed, recipients may report a violation of the Information and Communication Network Act, and businesses may receive an autonomous correction recommendation, a fine, or stronger administrative sanctions for repeated violations.
If the content of the advertisement itself is problematic, the Fair Labeling and Advertising Act applies. This law prohibits advertising practices that deceive or mislead consumers, and the following cases in particular may be problematic: - Providing information that is not true about products or services.
- Using the reputation of others or exaggerating performance or efficacy beyond reality.
- Claiming unfounded superiority over competitors.
Such practices are subject to investigation and deliberation by the Fair Trade Commission, and administrative sanctions such as fines, corrective orders, and public orders may be imposed. In particular, crackdowns on phrases and images that induce consumer confusion in the digital advertising environment are becoming increasingly strict. Risk management points for businesses to keep in mind To prevent such risks, businesses must check the following items: ▶Improve prior consent procedures Clearly record and preserve whether the recipient has provided explicit prior consent and review whether the consent acquisition method meets the requirements of the Information and Communication Network Act. Methods such as automatically checking the box in the optional consent section may not be valid. ▶Advertising display and opt-out notice Transmitted messages must include required elements such as “Advertisement” wording, sender’s contact information, and opt-out method, and must be configured to be visually identifiable. ▶Ensure objectivity of advertising content The Fair Labeling and Advertising Act applies very broadly to false or exaggerated advertising, so you must thoroughly review whether the content of the advertisement, such as the efficacy or benefits of a product, is consistent with reality. ▶ Establish internal processes It is essential to establish internal processes for checking by experts to prevent administrative sanctions or reputational risks due to illegal practices. Law firm Veat received a request from Company A (hereinafter referred to as “the client”) and reported the client, who violated the “Act on Promotion of Information and Communication Network Utilization and Information Protection, etc.” (hereinafter referred to as “the Information and Communication Network Act”) and the “Act on Fair Labeling and Advertising” (hereinafter referred to as “the Fair Labeling and Advertising Act”), to the Korea Internet & Security Agency (hereinafter referred to as “KISA”) and the Fair Trade Commission. In this process, we did not simply present circumstantial evidence but systematically organized and submitted objective evidence that could prove the advertisement, transmission path, and prior consent, leading to effective action on the illegal acts. Illegal acts involving the transmission of advertising information for profit can be addressed by directly reporting to KISA or the Fair Trade Commission. In particular, Law firm Veat provides in-depth legal interpretation and practical legal advice in response to these cases. It is most effective to have an expert check beforehand if there is a legal risk in transmitting advertising information or operating the Fair Labeling and Advertising Act, which is also important for preventing administrative sanctions or reputational risks due to illegal practices. Law firm Veat effectively protects the rights and interests of businesses and individuals based on a deep understanding of the Information and Communication Network Act, the Fair Labeling and Advertising Act, and abundant experience in responding to digital marketing risks, and will continue to analyze key issues in the information and advertising law areas and provide legal advice and dispute resolution services for businesses’ legal marketing activities. If you need legal advice regarding the transmission of advertising information for profit, the Information and Communication Network Act, the Fair Labeling and Advertising Act, KISA, and the Fair Trade Commission reporting, please feel free to contact Law firm Veat. This case study can also be viewed on the Law firm Veat blog: Thank you. Law firm Veat |
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