Prosecutors Indict Former CEO and Corporation of Aekyung Industry for 'Humidifier Disinfectant False Advertising'
[Asia Economy Reporter Heo Kyung-jun] The former CEO and the corporation of Aekyung Industrial Co., Ltd., which falsely and exaggeratedly advertised a humidifier disinfectant containing toxic substances as harmless, have been brought to trial.
The Criminal Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kwon Yoo-sik) indicted Aekyung Industrial Co., Ltd. and former CEO Ahn Yong-chan without detention on the 28th on charges of false and exaggerated advertising (violation of the Labeling and Advertising Act) for falsely advertising their humidifier disinfectant containing toxic substances as harmless to humans.
In October 2002, Aekyung Industrial released the humidifier disinfectant "Humidifier Mate Pine Needle Scent," which contained CMIT/MIT components, and distributed a press release stating that it was "recognized for low toxicity in the UK" and "harmless to humans." This false information was reported in internet news articles.
In October 2005, they released "Humidifier Mate Lavender Scent" and distributed a press release stating that it was "safe for humans" and "provides psychological stability to help recover from fatigue," which was also reported in internet articles.
However, investigations revealed that there was no objective evidence at the time that these products were harmless and safe for humans.
The prosecution judged this as a serious matter exposing consumers' lives and bodies to harm by providing false information through internet article formats easily accessible to anyone, aiming to emphasize promotional effects despite the safety of the products not being verified.
Earlier on the 24th of this month, the Fair Trade Commission filed complaints with the prosecution against three corporations?Aekyung Industrial, SK Chemicals, and SK Discovery?and three former CEOs.
In July 2016, when victims of humidifier disinfectants reported Aekyung Industrial and SK Chemicals for unfair advertising, the Fair Trade Commission excluded the problematic articles from review, citing that they were difficult to consider as advertisements. The victims filed a constitutional complaint. On the 29th of last month, the Constitutional Court ruled that the Fair Trade Commission's failure to review three internet articles was unconstitutional. The Fair Trade Commission then launched a reinvestigation and imposed sanctions.
For now, the prosecution has decided to indict only Aekyung Industrial first, while continuing investigations into SK Chemicals, SK Discovery, and their two former CEOs, who were reported as accomplices.
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A prosecution official stated, "Due to the statute of limitations controversy, we promptly conducted investigations immediately after the Fair Trade Commission's complaint and indicted some accused persons, while continuing investigations on others."
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