In its ruling, the FTC explained that the business operators who were exposed had deceived consumers, passing off positive reviews as those of experts while concealing the fact that the reviewers had received financial compensation. (image credit: Kobiz Media)
SEOUL, Jan. 25 (Korea Bizwire) – Companies that offered financial compensation to bloggers who wrote recommendation posts, including Sony Korea, Boryung Pharmaceuticals, Eva Airline, HanbitSoft, Hyundai Livart and other small operators in medical and IT fields., were dealt harsh fines by the regulation authorities.
On January 22, the Fair Trade Commission (FTC) announced that corrective measures were taken on the 20 Korean and foreign companies that paid bloggers and then publicized their recommendations, without disclosing their compensation or motives.
The FTC imposed the corrective order on the 10 companies found to have committed the most serious offenses. Among them, fines were imposed on 3 business operators.
By revising the review guidelines for displaying recommendations from reviewers, business operators will now have to disclose all compensation offered in return for reviews.
In its ruling, the FTC explained that the business operators who were exposed had deceived consumers, passing off positive reviews as those of experts while concealing the fact that the reviewers had received financial compensation.
Accordingly, the FTC levied penalties of 27 million won on EVA Air, 13 million won on Boryung Pharmaceuticals, and 27 million won on Sony Korea.
An FTC official said, “We plan to continuously monitor blog advertisements in the future and take the necessary measures regarding the illegal matters discovered.”
By Kevin Lee (kevinlee@koreabizwire.com)
