Energy 50% Saving Windows?…Korea Fair Trade Commission "Only Result Under Specific Conditions... Penalizes Exaggerated Advertising Companies"

[Sejong=Asia Economy Reporter Joo Sang-don] Window manufacturing and sales companies that advertised "energy savings rate of 51.4%" and "annual energy savings of about 1.7 million KRW" have been sanctioned by the Fair Trade Commission. This was because they advertised results calculated under limited conditions as if they were achievable in real life.

On the 28th, the Fair Trade Commission announced that it decided to issue corrective orders and impose a total fine of 1.283 billion KRW on five window manufacturing and sales companies: LG Hausys, KCC, Hyundai L&C, Igeon Changho, and Winche.

According to the Fair Trade Commission, these five companies advertised the energy-saving effects of window products by emphasizing specific figures such as annual energy savings and savings rates between February 2015 and August 2019. However, in this exaggeration, they did not mention the specific conditions under which the simulation results were derived, such as ▲ continuous occupancy with heating and cooling operating 24 hours a day, ▲ indoor temperature conditions of 24℃ or 25℃, and ▲ regional conditions (central or southern regions). They either did not state the limitations that the simulation results might not appear under conditions different from the test conditions or only included formal disclaimers such as "results may vary depending on the user's living environment."

Regarding this, the Fair Trade Commission judged that the act of exaggerating the energy savings rate and heating and cooling cost savings results calculated under specific conditions as if they could be sufficiently realized in general real-life situations was recognized as misleading. This was seen as ultimately obstructing consumers' rational choices and harming or potentially harming fair trade order.

Therefore, it was determined that such acts violated the Act on Fair Labeling and Advertising, and all five businesses were ordered to cease such acts in the future and were fined a total of 1.283 billion KRW.

A Fair Trade Commission official said, "This clarifies that advertising that exaggerates performance or effects obtained under specific conditions as general performance is a violation of the law," adding, "We will continuously monitor unfair labeling and advertising acts that may mislead consumers about product performance, efficiency, and efficacy, and strive to ensure that accurate information is delivered to consumers and a trustworthy consumption environment is created."

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