Anthracite as Natural Charcoal?… Metanoia Fined 102 Million KRW for False Raw Material Advertising and Prosecuted

[Asia Economy Reporter Moon Chaeseok] Metanoia, a company that manufactures heaters for construction sites, was caught by the Fair Trade Commission for falsely labeling and advertising its product, anthracite briquettes, as natural charcoal.

The Fair Trade Commission announced on the 28th that it decided to impose a prohibition order and public announcement order on the company, which sold 'Hwarak Charcoal Fire Heater' since September 2017 and advertised anthracite briquettes as natural charcoal on the container and pamphlet, along with a fine of 102 million KRW. Both the company and its CEO will be reported to the prosecution.

Metanoia not only falsely claimed that anthracite briquettes were natural charcoal but also advertised in the pamphlet that no harmful gases such as carbon monoxide are emitted, making it harmless to the human body.

The Fair Trade Commission judged that Metanoia’s advertising was both false and exaggerated.

Consumers cannot practically verify the truthfulness of the product’s raw materials or claims of harmlessness to the human body, so they have no choice but to trust such information, which may lead them to misunderstand the product’s functions and risks due to the company’s actions.

Since raw materials and harmlessness to the human body are the most important factors consumers consider when purchasing products, Metanoia’s labeling and advertising were seen as acts that distort consumers’ rational purchasing decisions and threaten fair trade order.

A Fair Trade Commission official said, “It is significant that we have strictly sanctioned the act of falsely labeling and advertising the raw materials and safety of heaters for construction sites, which closely affect consumers’ life and bodily safety,” adding, “In a situation where consumer interest in health and safety is increasing, we have taken the strictest measures allowed under the Act on Labeling and Advertising, including fines and prosecution reports, by detecting false and exaggerated safety-related labeling and advertising.”

He continued, “We hope this action will serve as an opportunity to prevent the circulation of misleading information that threatens consumer safety in the market,” and “The Fair Trade Commission plans to continuously strengthen monitoring of false, exaggerated, or deceptive labeling and advertising related to consumer health and safety to ensure the safety of consumer life.”

This content was produced with the assistance of AI translation services.