– Corrective orders, fines, and surcharges imposed on Mustit Co., Ltd., Trenbe Co., Ltd., and Ballan Co., Ltd. –
The Korea Fair Trade Commission (Chairperson Han Ki-jeong, hereinafter referred to as the "KFTC") has decided to impose corrective orders, fines totaling KRW 1.2 million, and surcharges amounting to KRW 1.6 million against three platform companies—Mustit Co., Ltd., Trenbe Co., Ltd., and Ballan Co., Ltd.—that sell high-end luxury goods for violations of the Labeling and Advertising Act and the E-Commerce Act.
Enforcement Details:
- Mustit Co., Ltd. (Decision: March 2025): Corrective order, fine (KRW 550,000), surcharge (KRW 1.6 million)
- Trenbe Co., Ltd. (Decision: January 2025): Corrective order, fine (KRW 350,000)
- Ballan Co., Ltd. (Decision: January 2025): Corrective order, fine (KRW 300,000)
Key Violations:
1. Deceptive Time-Limited Discount Advertising (Mustit)
From January 2021 to July 2024, Mustit promoted products on its platform—whether sold directly or as an intermediary—using phrases like “Super special time sale for ○ days only” and “Sale ending soon,” despite continuously running the same discounts over extended periods. These advertisements were judged to be deceptive or exaggerated, likely misleading consumers into believing discounts were only temporary.
In March 2025, the KFTC concluded that these practices violated the Labeling and Advertising Act and imposed a corrective order, a public disclosure order, and a surcharge of KRW 1.6 million.
2. Obstructing Order Cancellation Rights (Mustit and Trenbe)
Mustit and Trenbe were found to limit consumers' cancellation rights for reasons not permitted under the E-Commerce Act—such as for discounted items or size mismatches—or to mislead consumers into thinking cancellation was only possible within 7 days, even in cases of defective or misdelivered products. This contradicts the legal allowance of up to 3 months (or 30 days after learning of the issue).
- Trenbe (January 2025) and Mustit (March 2025) were both sanctioned with corrective orders, public disclosure orders, and fines of KRW 250,000 each.
3. Failure to Provide Mandatory Product Information (Trenbe and Ballan)
Both Trenbe and Ballan, while operating their e-commerce platforms, failed to provide essential product information—such as manufacturer, country of origin, and importer—required by the notification on product information disclosure in e-commerce.
- In January 2025, the KFTC imposed corrective orders and fines of KRW 100,000 each for violating their obligation to provide accurate transaction terms and seller identification under the E-Commerce Act.