L’Oreal Korea, LG Household & Healthcare, AmorePacific, and Dyson Korea have been fined by the Fair Trade Commission (KFTC) for concealing that they paid Instagram influencers to post favorable reviews of their products, the antitrust agency announced Monday, November 25.
The KFTC imposed a combined 269 million won (US$228,740) fine on the four, as well as three other consumer goods companies, for violating the Act on Fair Labeling and Advertising. The others were LVMH Cosmetics, TGRN, and Calobye which sell weight loss supplements.
This is the first time the antitrust watchdog has punished this type of illegal advertising on Instagram, reported Pulse News.
According to the KFTC, the seven companies paid or provided free products to the influencers in return for them posting 4,177 reviews on their accounts. In requesting reviews, the companies told the influencers which hashtags and photos to post.
Full Content: Pulse News
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