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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] South Korea’s Fair Trade Commission (KFTC) has issued a corrective order to POSCO and POSCO Holdings over misleading advertisements that labeled their "INNOVILT"-certified products as eco-friendly.
On Wednesday, the KFTC announced that it had determined POSCO violated the Act on Fair Labeling and Advertising by falsely promoting these products as environmentally friendly. The commission has ordered the companies to cease any similar deceptive advertising in the future.
INNOVILT is a certification that POSCO grants to construction companies using its steel products for building materials. However, the KFTC found that the environmental aspect accounted for only 2 out of 100 points in the certification’s evaluation criteria, making it insufficient to classify the products as eco-friendly.
The commission concluded that POSCO’s advertisements misrepresented the nature of the certification and unfairly enhanced the company’s image through misleading claims.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
