Gangnam District Office Notifies Administrative Action to 'Esther Formula'
MFDS Confirms Unlawful Advertising by Esther Mall
Health functional food company operated by Yeoh Esther (58), a family medicine specialist and broadcaster, received a two-month business suspension from Gangnam District Office for false and exaggerated advertising.
On the 11th, Gangnam District Office announced that it decided and notified the two-month business suspension administrative disposition for 'Esther Formula,' operated by Yeoh. This decision was made following a request from the Ministry of Food and Drug Safety (hereinafter 'MFDS') to investigate unfair advertising on Esther Formula's online shopping mall 'Esther Mall.' The MFDS judged that Esther Formula engaged in advertising that could mislead consumers into believing that general foods sold had efficacy and effects in disease prevention and treatment. However, if Yeoh's side prefers to pay a fine instead of business suspension, they can request this from the district office.
Yeoh was accused last month of violating the Food Labeling and Advertising Act. The accuser, a former MFDS director, claimed that Yeoh used her medical status during product promotion to advertise based on unverified information. Subsequently, the MFDS received similar reports through the National Petition System.
At that time, Yeoh immediately issued a statement denying the claims, saying, "This is completely untrue." She stated, "All advertisements have undergone review by the Korea Health Supplements Association, an institution officially entrusted by the MFDS for advertising review," and added, "Most of what the accuser claims as illegal are parts of a magazine operated to provide health information to consumers, not explanations about the products we sell." She further said, "I will sincerely cooperate with the investigation. If any wrongdoing is found, I will of course accept appropriate punishment and take social responsibility," and added, "I trust the investigative authorities will make a wise judgment regarding this accusation. Depending on the outcome, I will strictly hold the accuser legally accountable."
Later, on the 29th of last month, the MFDS announced that it confirmed some unfair advertising violations of the Food Labeling and Advertising Act on 'Esther Mall.' The MFDS explained, "As a result of investigating unfair advertising on Esther Mall, it was found that the site sold general foods while advertising in a way that could mislead consumers into believing the products had efficacy and effects in disease prevention and treatment," and added, "This violates Article 8 of the Food Labeling and Advertising Act, which prohibits unfair labeling or advertising acts." According to the law, if food is labeled or advertised in a way that may cause consumers to perceive it as having efficacy or effects in disease prevention or treatment, the first violation results in a two-month business suspension, and the second violation may lead to cancellation of business permits or registration, or closure of the business.
According to the Financial Supervisory Service's electronic disclosure system, Esther Formula's sales last year amounted to 201.63961 billion KRW. This is more than five times the 37.34214 billion KRW recorded in 2019.
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