"Was I the Only One Worried?" Alzip Mat Fined 500 Million Won for Deceptive Online Comments

A baby mat manufacturer that systematically disparaged competitor products on "Mom Cafes"-online communities where mothers share information-while pretending to be ordinary consumers, has been sanctioned by the Fair Trade Commission.

Some photos including defamatory comments by JWorld (Alzip) against competitors. Fair Trade Commission.

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On April 19, the Fair Trade Commission announced that JWorld Industry, known for the "Alzip Mat" brand, was found to have used an advertising agency to post defamatory comments and articles about competitor "Creamhaus" products on 54 online platforms, including Mom Cafes. The commission decided to issue a corrective order and impose a fine of 500 million won. This amount represents the statutory maximum for a flat-rate penalty that can be imposed when it is difficult to calculate based on revenue, according to relevant laws.

According to the Fair Trade Commission's investigation, from October 2017 to June 2028, JWorld (Alzip) secured hundreds of user accounts through an advertising agency and systematically engaged in disparagement activities while pretending to be real users. In particular, they incited fear by alleging that harmful substances had been detected in competitor products, and misled consumers by posting questions themselves and recommending their own products in a "self Q&A" format. There were as many as 274 such comments.

Additionally, JWorld specifically instructed the advertising agency on the content of the comments and received status reports. These activities continued until a police search and seizure was conducted in June 2018 on suspicion of interference with business. The resulting comments and posts remained online until as late as September of last year.

Instructions regarding defamatory comments related to J-World (Alzip) competitors. Fair Trade Commission.

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The Fair Trade Commission determined that these actions by JWorld constituted "deceptive advertising" and "defamatory advertising" under the Act on Fair Labeling and Advertising. It was decided to impose the maximum statutory fine, given that the comments were written with a malicious intent to disparage a competitor.

The Fair Trade Commission stated, "This case is significant in that it detected and sanctioned the malicious exploitation of parents' sensitivities regarding information related to their children." The commission added, "We will continue to monitor unfair advertising practices to ensure that accurate information is provided to parents, who rely on such information in making rational purchasing decisions, and will strictly sanction any violations found."

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