Korea’s Fair Trade Commission will punish the country’s four leading open market firms over alleged deceptive displays of products, the antitrust watchdog said Monday.
The firms -- Gmarket, Auction, Interpark and 11st -- have been under investigation for allegedly labeling products as “best goods” or placing them at the top of their respective websites in exchange for advertising fees.
“The FTC is in the final stage to complete an examination report on the open market firms’ unfair practices. We are planning to bring it to a full session that will decide the level of punishment within this year,” an FTC official said.
The firms could face fines or correction orders depends on the meeting call, according to the FTC.
The inquiry stems from a wider review by the watchdog authorities into the 14.3 trillion won ($12.2 billion) industry around their false and exaggerated advertisements since June this year.
Last year, the open market industry’s sales from advertisement stood at 283.5 billion won.
The FTC said the business practice could mislead consumers to thinking the paid products displayed at the top section of webpages are better quality items or more popular than other commodities not promoted.
