60% of Illegal Activities in SNS Commerce Are 'Hidden Advertisements'... "No Means of Sanction"

"Only Businesses Requesting False Advertising Punished, YouTubers Escape Legal Consequences"

Lee Young, member of the United Future Party

[Asia Economy Reporter Jin-gyu Lee] More than half of illegal acts infringing consumer rights in commerce through social network services (SNS) were found to be caused by 'dwigwanggo' (the act of promoting products while hiding sponsorship). There is also no proper means to sanction dwigwanggo under current law, highlighting the urgent need for system improvement.

According to data submitted by the Korea Fair Trade Commission to Lee Young, a member of the Future United Party, the total number of 'SNS market consumer-related law violations' recorded from last year to last month reached 458 cases. Among these, 277 cases (60%) were violations of the "Act on Fair Labeling and Advertising" (hereinafter referred to as the Fair Advertising Act) for failing to properly indicate that it was an advertisement.

Consumer-related laws include ▲ the Fair Advertising Act ▲ the Electronic Commerce Act ▲ the Door-to-Door Sales Act ▲ the Installment Transactions Act, among others. SNS markets include online transactions, mobile transactions, and other telecommunication sales conducted through platforms such as YouTube, Instagram, Facebook, Twitter, Kakao, and Naver Cafe.

Rep. Lee pointed out, "There is no direct means under current law to sanction influencers who engage in dwigwanggo," adding, "The Fair Advertising Act mainly targets businesses that commission unfair advertisements."

He explained, "Businesses that commission unfair advertisements may be fined up to 2% of their sales or income or up to 500 million KRW, and if prosecuted, may face imprisonment of up to two years or fines up to 150 million KRW. However, YouTubers who deceive consumers are free from legal sanctions." He emphasized, "The system should be improved to rationally regulate unfair acts under the Fair Advertising Act and to induce self-purification effects such as education in related industries."

According to data from the Korea Consumer Agency, the number of consumer consultations related to SNS markets has been increasing, with 2,093 cases in 2017, 2,387 cases in 2018, 3,307 cases last year, and 1,879 cases as of August this year. Rep. Lee stated, "Last year, the domestic advertising market size was 14 trillion KRW, of which the SNS advertising market alone approached 5 trillion KRW," adding, "The influence of YouTubers and influencers on consumers is growing, but consumer protection systems are not keeping pace with reality."

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