Politics · South Korea · 6 hrs ago

TV Home-Shopping Refunds Covered Just 5.7% of Sales From Misleading Ads

TV Home-Shopping Refunds Covered Just 5.7% of Sales From Misleading Ads

South Korea’s media regulator penalized seven TV home-shopping companies over 13 cases of misleading or exaggerated advertising this year.

The cases involved products including health supplements and cosmetics, whose ads were found to mislead viewers about their effects or encourage impulsive purchases.

The products generated 11.2 billion won in sales, but customers received only 651 million won in refunds, or 5.7% of that amount.

For one health supplement, four companies sold 25,545 units for about 8.2 billion won, while refunds came to about 290 million won.

At least nine months passed between sales and penalties in the cases described, and many refunds appear to have happened independently of the regulator’s action.

There is no legal rule requiring refunds for products penalized over misleading ads, and companies did not directly notify buyers about refund procedures.

A lawmaker called for rules requiring companies to tell customers about penalties and organize refunds, but no next step was specified.

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What people are saying

Seo Cheon-hoPeople Power Party lawmaker
TV home-shopping companies should act quickly to develop measures to prevent unfair transactions, including institutionalizing the process of informing customers about disciplinary decisions and processing refunds.
via Donga Ilbo