South Korean FTC fines moving companies for false advertising

South Korea’s Fair Trade Commission (FTC) has imposed a total of 219 million won in fines on two moving service companies, Chakhan Isa and Rosen Isa, for engaging in false and exaggerated advertising.

Chakhan Isa was fined 132 million won for claiming to offer the ‘lowest prices nationwide’ and ‘minimum discounts on all types of moving’ without objective evidence. The company also inflated its cumulative consultation numbers in platform search advertisements to appear more widely used than it actually was.

Rosen Isa received a fine of 87 million won for advertising itself as the ‘No. 1 moving brand in Korea’ and ‘No. 1 in Korean quality satisfaction’ without disclosing the awarding organizations, evaluation criteria, or methods used to obtain these titles. Additionally, the company inflated its number of quote inquiries to mislead consumers regarding its actual customer base.

The FTC’s investigation follows a rising trend in consumer complaints. According to the Korea Consumer Agency, requests for relief regarding moving service damages increased from 603 cases in 2023 to 961 cases last year. The FTC stated it will continue to monitor unfair advertising in sectors closely related to daily consumer life.