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THE INVESTOR
June 19, 2019
Big Reunion

LG

LG fined W50m over false advertising

  • PUBLISHED :May 28, 2019 - 13:43
  • UPDATED :May 28, 2019 - 13:43
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South Korea’s antitrust regulator said on May 28 it has fined major home appliance maker LG Electronics 50 million won ($42,000) for false advertising for containers in its refrigerators.

The Fair Trade Commission said it claimed in catalogues and on its website from June 2011 to June 2016 that containers in its kimchi refrigerators received approval from the US Food and Drug Administration.

LG’s move is tantamount to false and exaggerated advertising as the containers just satisfied safety standards of the FDA. The US agency does not approve plastic containers for food.

“There are concerns that LG’s advertising could undermine fair trade by misleading consumers that its containers are better than the ones of its competitors,” the commission said.

LG said it has already corrected the false advertising, which it said was a mistake.

Kimchi refrigerators are one of the most popular products in Korea, where many people eat the traditional Korean side dish normally made with fermented cabbage, salt and hot peppers.

By Ram Garikipati and newswires (ram@heralcorp.com)

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