False Sale & Return Restrictions: Fair Commission, Must It, Trenbi, Balan Penalties
Fair Trade Commission Sanctions Luxury Goods Platforms for Violations
SEOUL — The Fair Trade Commission (FTC) has levied sanctions, including corrective orders and fines totaling 28 million won, against three online platforms specializing in the sale of luxury goods. The penalties stem from violations of the Act on Fair Labeling and Advertising and the E-commerce Act, the FTC announced Tuesday.
Deceptive Advertising Practices
The FTC found that Must-It engaged in deceptive advertising by creating a false sense of urgency for consumers. From January 2021 to July 2024, Must-It used phrases such as “Super Special Time Sale, only runs for ○” and “The sale is over” while continuously offering discounts on the same products. The FTC determined that these practices were misleading and could deceive consumers.
As an inevitable result, the FTC issued a prohibition order, a public announcement order, and a penalty of 16 million won against Must-It in March 2025 for violating the Labeling Advertising Act.
Restricting Subscription Withdrawals
The FTC also found that Trenbe and Must-It improperly restricted consumers’ rights to withdraw from subscriptions.Even when the companies sold products directly through their online stores, and the e-commerce law did not require it, they guided the withdrawal of the subscription only within 7 days. They also misinformed consumers about their rights, falsely stating that the withdrawal period was shorter than the legally mandated three months (30 days from the day).
In response, the FTC issued a prohibition order, a public announcement order, and a penalty of 25 million won against Trenbe and Must-It in January 2025 for interfering with consumers’ rights to withdraw from subscriptions.
Failure to Provide Essential Facts
Furthermore,Trenbe and Balan were cited for failing to provide essential information about products,such as the names of manufacturers,producers,and importers,as required by the E-Commerce Act. This omission hindered consumers’ ability to accurately understand the terms of the contract and make informed purchasing decisions.
The FTC determined that these actions violated the obligation to provide information on the identity and transaction conditions of telecommunications vendors, as defined by the E-Commerce Act, and imposed sanctions in January 2025.
Protecting Consumers in the Luxury Goods Market
An FTC official stated, “This measure is expected to help consumers make reasonable purchases by ensuring that these companies comply with labeling advertising laws and e-commerce laws. By identifying and correcting limited-term discount advertising and subscription practices in the platform market, which sells expensive products of domestic and foreign brands, the FTC aims to protect consumers.”
Fair Trade Commission Sanctions Luxury Goods Platforms: Your Questions Answered
What’s the basic news here concerning these luxury goods platforms?
The Fair Trade Commission (FTC) in seoul has sanctioned three online platforms specializing in luxury goods. These platforms were penalized for violating South Korean consumer protection laws. The infringements resulted in corrective orders and fines totaling 28 million won. The FTC announced these penalties on Tuesday.
Which platforms were sanctioned, and why?
Three platforms were specifically targeted: Must-It, Trenbe, and Balan. The sanctions were imposed due to violations of the Act on Fair Labeling and Advertising and the E-commerce Act. These violations mainly fall into three categories, explained below.
What are the specific violations of Must-It?
Must-It was penalized for deceptive advertising practices. The FTC found that Must-It created a false sense of urgency for consumers by using phrases such as “Super Special Time Sale, only runs for ○” and “The sale is over” while continuously offering discounts on the same products. This practice was deemed misleading.
What penalties did Must-It receive for deceptive advertising?
In March 2025, the FTC issued a prohibition order, a public declaration order, and imposed a penalty of 16 million won against Must-It for violating the Labeling Advertising Act.
What violations did Trenbe and Must-It commit regarding subscriptions?
Trenbe and Must-It were found to have improperly restricted consumers’ rights to withdraw from subscriptions. Even when the e-commerce law didn’t mandate it, they limited subscription withdrawals to only seven days. They also misinformed consumers about their rights by falsely stating a shorter withdrawal period than the legally required 30 days (three months).
What penalties did Trenbe and Must-It face for the subscription violations?
In January 2025,the FTC issued a prohibition order,a public announcement order,and a penalty of 25 million won against Trenbe and Must-It.
What other violations led to sanctions?
trenbe and Balan were also cited for failing to provide essential product data as required by the E-Commerce Act.This included omitting details such as the names of manufacturers,producers,and importers.
Why is providing this essential information important?
This omission hinders consumers’ ability to understand contract terms accurately and make informed purchasing decisions.
What sanctions were imposed on Trenbe and Balan for failing to provide essential facts?
Sanctions were imposed in January 2025.
What laws were violated according to FTC for Trenbe and Balan’s omission?
The FTC determined that these actions violated the obligation to provide information on the identity and transaction conditions of telecommunications vendors, as defined by the E-Commerce Act.
What is the overall impact of these sanctions?
An FTC official stated the measures aim to protect consumers by ensuring companies comply with labeling advertising and e-commerce laws.
How do these measures protect consumers specifically?
The FTC hopes to protect consumers by identifying and correcting misleading practices (like “limited-term discount advertising” and unfair subscription policies) within the luxury goods platform market. This helps consumers make more informed and reasonable purchasing decisions.
Here is a summary of the violations and penalties:
| Platform | Violation | Penalty | Date |
|---|---|---|---|
| Must-It | Deceptive Advertising | 16 million won, Prohibition Order, Public Announcement | March 2025 |
| Trenbe & Must-It | Restricting Subscription Withdrawals | 25 million won, Prohibition Order, Public Announcement | January 2025 |
| Trenbe & balan | Failure to Provide Essential Product Information | Sanctions Imposed | January 2025 |