5 window companies such as LG Hausys and KCC, exaggerated advertisements… The Fair Trade Commission imposed a penalty of 1.3 billion won

[세종=뉴스핌] Reporter Min Gyeong-ha = Five window makers and sellers, including LG Hausys and KCC, exaggerated their energy savings and advertised, but they were caught by the process authorities.

The Fair Trade Commission announced on the 28th that it has decided to impose a corrective order and a penalty of 1.28 billion won for the actions that five companies advertised by exaggerating their energy saving rate and savings in heating and cooling costs.

Five companies that received sanctions this time are ▲LG Hausys ▲KCC ▲Hyundai L&C ▲Lee Kun Changho ▲Winche.

They exaggerated and advertised the energy saving effect that can only be achieved in a specific residential environment as if it could be obtained in a general residential environment.

LG Hausys exaggerated advertisement case [사진=공정거래위원회] 2021.03.28 [email protected]

For example, LG Hausys exaggeratedly advertised as if both cooling and insulation performance improved by about 64 to 70% based on the fact that the insulation performance improved by about 64 to 70%. KCC exaggerated advertisement by inflating the energy saving effect (energy saving rate of 41.9%, saving cost of 370,000 won) confirmed through actual tests (energy saving rate of 51.4%, saving cost of 1.7 million won).

Since the method of measuring the energy and cost savings of windows and doors is not standardized, business operators can simulate a specific living environment and use the results in advertisements. However, in such a case, it is pointed out that information on the difference between the simulation environment and the actual living environment should be provided.

The five companies did not provide relevant information or indicated their limitations very briefly. The Fair Trade Commission determined that such actions hindered consumers’ rational choices and hindered fair trade order.

The Fair Trade Commission imposed an order to prohibit future acts on five business operators and imposed a total of 1.28 billion won in fines. Specifically, ▲LG Hausys KRW 710 million ▲KCC KRW 228 million ▲Hyundai L&C KRW 225 million ▲Lee Kun Changho KRW 108 million ▲Winche KRW 32 million.

An official from the FTC said, “From now on, the FTC will continue to monitor unfair labeling and advertising activities that may mislead the performance, efficiency, and efficacy of products.”

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