Fair Trade Law Q&A - False or Misleading Advertising

1. In determining whether a representation or symbol is false or misleading, the following factors shall be taken into consideration:
   1. The determination of whether a representation or symbol is false or misleading shall be based on the basis of the general public exercising an ordinary degree of care.
   2. Where the content of a representation or symbol is manifested by comparison or especially distinctive means, and where the major part that is especially distinctive could easily form the primary factor contributing to a consumer's transaction decision, the especially distinctive major part may be observed independently in making the determination.
   3. Where a representation or symbol, observed in isolation, is factual, but the overall impression and effect it delivers, when observed in combination, is sufficient to cause concern about misunderstanding or erroneous decisions by counterparts involved in a relevant transaction, it shall be deemed misleading.
   4. The representation or symbol with respect to the content of critical transaction information is disproportionally arranged in its layout, position, and font size, as to cause concern on the misunderstanding or erroneous decisions by counterparts in a relevant transaction.
   5. The representation or symbol with respect to the conditions of burden or limitation does not fully disclose such conditions as to cause concern on the misunderstanding or erroneous decisions by counterparts in a relevant transaction.
   6. A representation or symbol objectively having multiple reasonable interpretations shall not be deemed false as long as one of the meanings is true. However, this shall not apply when the intent to mislead is plainly obvious.
   7. The degree of discrepancy between the representation or symbol and the actual conditions.
   8. Whether the content of the representation or symbol is likely to affect the trading counterparts possessing ordinary knowledge and experience to make reasonable judgment and trading decisions.
   9. The impact on the economic interests of competing enterprises and trading counterparts.
2. In assessing the extent to which a representation or symbol differs from the actual circumstances, reference may be made to the opinions of the competent authority for the relevant industry or to impartial and objective professional institutions.