Fair Trade Commission: "Hyundai Motor and Kia's advertisements claiming performance degradation and malfunctions caused by using non-genuine parts are false and exaggerated"

Warning Issued for Hyundai Motor and Kia's Unfair Labeling Practices

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) has decided to sanction Hyundai Motor Company and Kia Corporation for indicating that "only genuine parts must be used to ensure safety and maintain optimal performance" or that "using non-genuine parts can cause vehicle performance degradation and malfunctions." The KFTC judged that such statements, made without objective empirical evidence, constitute false and exaggerated advertising.

On the 12th, the KFTC announced that it decided to issue a warning to Hyundai and Kia for unfairly indicating the quality or performance of their genuine and non-genuine parts in this manner.

According to the KFTC, from September 2012 to June 2020, Hyundai and Kia used phrases such as "Only genuine parts optimized for the vehicle ensure safety and maintain optimal performance" and "Using non-genuine parts can cause vehicle performance degradation and malfunctions" in the owner's manuals of the vehicles they manufacture and sell.

The KFTC determined that these statements created the impression among general consumers that only genuine parts are safe and can deliver full performance, while non-genuine parts are inferior in quality and performance, unsafe, and unsuitable for use.

A KFTC official explained, "Non-genuine parts can be divided into standard parts that meet legal standards and domestic and international specifications, and non-standard parts (defective parts, illegal parts, etc.). Standard non-genuine parts pass necessary safety and performance tests and standards, so they cannot be deemed inherently unsuitable for use. Hyundai and Kia failed to objectively prove that all non-genuine parts have inferior quality or performance." According to the Act on Labeling and Advertising, businesses must be able to substantiate factual matters related to their claims and advertisements.

The KFTC judged that general consumers who encountered these statements might misunderstand or be likely to misunderstand that only genuine parts are safe and perform fully, and that all other parts, including standard non-genuine parts, are inferior in quality and performance and unsuitable for use. This ultimately hinders consumers' rational choice when selecting parts for vehicle maintenance and repair, thereby potentially undermining fair trade order.

A KFTC official stated, "This measure is expected to support consumers' rational choices in the automotive parts market for after-sales service (A/S) and further contribute to establishing a fair trade order among various parts manufacturers in the market."

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