Revised Guidelines for Endorsements and Testimonials to Take Effect on December 1
The Korea Fair Trade Commission (hereinafter referred to as KFTC) will implement the revised Guidelines for the Review of Labeling and Advertising of Endorsements and Testimonials (hereinafter referred to as the Guidelines) starting December 1. These revisions aim to improve disclosure practices for economic relationships in text-based media, such as blogs, and to clarify the meaning of economic relationships.
During the public comment period (August 20–September 9), the KFTC collected a wide range of opinions from stakeholders, including related agencies, industry participants, and general consumers, and incorporated them into the final revisions.
Under the current Guidelines, economic relationship disclosures in text-based media, such as blogs and online communities, must be included at either the beginning or the end of a post. However, when disclosures are placed at the end of a post, consumers may have difficulty noticing them, particularly if the post is lengthy.
To address this issue, the KFTC has revised the Guidelines to require that economic relationship disclosures be included in the title or at the beginning of posts in text-based media, making it easier for consumers to recognize such posts as advertisements.
Additionally, there has been an increase in marketing practices where economic compensation is provided conditionally or in the future. Examples include receiving commissions based on sales generated through purchase links or receiving reimbursement for purchase costs after writing a review.
The revised Guidelines now include examples of these emerging marketing methods to clarify cases where economic relationships may affect the credibility of endorsements or testimonials, ensuring that such relationships are disclosed.
Furthermore, the KFTC has added examples of ambiguous expressions, such as “a small fee may be provided,” to the category of disclosures that fail to provide clear information. These expressions could imply that a post is not an advertisement, leading to potential consumer confusion.
The KFTC expects that these revisions will help consumers more easily identify advertisements disguised as product reviews. For advertisers and influencers, the revisions provide clearer guidelines, enhancing the effectiveness of the Guidelines and the predictability of compliance requirements. This, in turn, aims to prevent misleading advertisements, protect consumers from harm, and support rational decision-making.
The revised Guidelines will apply to activities conducted after their implementation date. The KFTC plans to actively promote the changes to ensure compliance by industry players and influencers and will conduct ongoing online advertising monitoring to ensure adherence.