Fair Trade Law Q&A - False or Misleading Advertising

How are responsibilities divided between the Fair Trade Commission and other administrative agencies in enforcing laws against false or misleading advertising?

The Fair Trade Commission is responsible for investigating and handling unfair competition practices, including false or misleading advertising. When the Commission receives information indicating that an advertisement may be false or misleading, it will investigate and handle the matter within the scope of its statutory authority. If a violation is found, the FTC will impose appropriate sanctions in accordance with the law in order to maintain fair market order and protect consumer interests. The domestic regulations governing false or misleading advertising are also found in laws and regulations administered by various competent authorities. These authorities work together within their respective jurisdictions to combat unlawful conduct and protect the public. The following types of cases are generally referred by the Commission to the competent authorities listed below:

  Type of Cases Competent Authority
1 Advertisements of goods or services claiming, implying, or suggesting medical efficacy Ministry of Health and Welfare
2 Labeling and advertising of food, health foods, dairy products, cosmetics, and pharmaceuticals Ministry of Health and Welfare
3 Medical advertisements Ministry of Health and Welfare
4 Advertisements relating to human organ banks Ministry of Health and Welfare
5 Labeling of general commodities Ministry of Economic Affairs
6 Labeling relating to the sale of seeds and seedlings Ministry of Agriculture
7 Labeling and advertising of pesticides, fertilizers, animal feed, breeding livestock and poultry, genetic resources, veterinary drugs, and pet food Ministry of Agriculture
8 Labeling of agricultural products at the wholesale market stage, labeling of packaged rice sold on the market, traceable agricultural product labeling, and labeling and advertising of organic foods Ministry of Agriculture
9 Advertising of agricultural products, labeling of agricultural products at the retail market stage, and advertising of packaged rice sold on the market Ministry of Health and Welfare
10 Advertisements published by veterinarians in connection with their professional practice Ministry of Agriculture
11 Labeling of tobacco and alcohol products and advertising of alcoholic beverages National Treasury Administration, Ministry of Finance
12 Advertisements of registered cram schools Education authorities of special municipalities, counties, or cities
13 False or misleading advertisements relating to job placement services or employee recruitment Ministry of Labor
14 False or misleading recruitment advertisements or brochures issued by vocational training institutions Ministry of Labor
15 Travel service advertisements Tourism Administration, Ministry of Transportation and Communications,
16 False or misleading advertisements by stock exchanges or future trading businesses Financial Supervisory Commission
17 Advertisements creating the false impression that a person is a certified public accountant without legally obtaining CPA qualifications Financial Supervisory Commission
18 Advertisements involving affairs governed by financial laws and regulations Financial Supervisory Commission
19 Immigration service advertisements Ministry of the Interior
20 Real estate brokerage advertisements falling within the scope of the Real Estate Brokerage Management Act Ministry of the Interior
21 Cross-border marriage matchmaking advertisements Ministry of the Interior
22 Other matters that, pursuant to coordination between the Fair Trade Commission and other administrative agencies, or under the principle that a special law prevails over a general law, should be handled first by another competent authority Other competent authorities

Relevant Provision: Article 21 of the Fair Trade Act