Fair Trade Commission: "Nissan and Porsche Falsely Advertised Emission Reduction Performance... Fined 173 Million KRW"

Installation of Manipulation Program…Failure to Meet Emission Standards
Selling Vehicles Violating the Air Quality Preservation Act While Indicating They Are Problem-Free

[Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 24th that it has decided to issue corrective orders and impose fines totaling 173 million KRW on two imported car manufacturers and sellers, Korea Nissan and Porsche Korea, for unfairly labeling the emission reduction performance of their vehicles.

According to the Fair Trade Commission, these businesses installed manipulation programs that ensured the emission reduction devices operated properly only under certification test conditions, while deliberately degrading the performance of these devices during normal driving conditions, effectively failing to meet emission standards. They sold vehicles violating the Air Quality Preservation Act while indicating that there were no issues with the vehicles.

In response, the Fair Trade Commission judged that the respondents’ acts of falsely and exaggeratedly representing their vehicles as meeting emission standards and being manufactured in compliance with the Air Quality Preservation Act were confirmed. Furthermore, the Commission determined that general consumers exposed to these advertisements could be misled or have the potential to be misled into believing that the vehicles sold by the respondents met emission standards and were manufactured in accordance with the Air Quality Preservation Act. Additionally, the Commission viewed these acts as obstructing consumers’ rational choices and potentially undermining fair trade order.

A Fair Trade Commission official stated, "We will continue to monitor false and exaggerated advertising practices in areas directly or indirectly related to the environment and consumers’ health and safety." He added, "Among the five companies caught in the second Dieselgate by the Ministry of Environment, four cases including this action have already been addressed, and the remaining one case will be concluded promptly."