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THE INVESTOR

Automobiles

FTC slaps W69m fine on GM Korea for false ads

  • PUBLISHED :March 13, 2017 - 17:53
  • UPDATED :March 13, 2017 - 17:53
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[THE INVESTOR] South Korea’s antitrust watchdog has fined GM Korea, the local unit of US automaker General Motors, 69 million won (US$60,153.51) for running false advertisements.

The Fair Trade Commission on March 13 said GM Korea advertised it is giving out free coupons for car window tint when the deal had been already included in the increased car price. The FTC ordered the Korean unit to issue a public notice in newspapers, in addition to the fine. 




According to the FTC, GM Korea advertised fake tint coupons from February 2013 to October 2014 for eight different models, including Captiva, Trax, Cruze, Spark, Aveo, Orlando, Malibu and Alpheon.

The authorities revealed the automaker included the 60,000 won to 70,000 won price in the final price tag, while giving out what it called “free complementary coupons.” GM Korea limited the consumer’s choice to select films from other companies as well, the FTC said.

Some 10 percent of over 190,000 affected consumers had decided not to use the coupon in the first place, thinking the service was free, costing them twice as much.

By Ahn Sung-mi (sahn@heraldcorp.com)
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