A Company Penalized for False and Exaggerated Advertising Claiming "9 out of 10 Passed" Based on Survey of Only 10 People

Fair Trade Commission imposes corrective orders and 5 million won fines
'Discount deadline advertisements' also subject to sanctions

Eduwill, which advertised online lecture products with the claim that "9 out of 10 people passed in the short term within 3 months," has been sanctioned by the Fair Trade Commission for false and exaggerated advertising. The company also faced penalties for continuing the same discount event after advertising it as "ending today only."

On the 4th, the Fair Trade Commission announced that it would impose a corrective order and a fine of 5 million KRW on Eduwill for violating the Electronic Commerce Act.

Eduwill advertisement judged by the Fair Trade Commission to be in violation of the Electronic Commerce Act
[Photo by Fair Trade Commission]

From March 15 to April 26, 2022, Eduwill sold online lecture products related to employment at public enterprises, advertising that "9 out of 10 people passed in the short term within 3 months." However, this was based on a survey conducted with only 10 students. The survey content was also far from the actual employment period. Eduwill asked in the survey about the "period from studying Eduwill's employment lectures to passing," which could have been shorter than the total time required to prepare for employment.

The Fair Trade Commission pointed out that the survey sample was too small to be representative. It also judged that general consumers were likely to misunderstand that 90% of all students who applied for the lectures passed within 3 months, thus attracting consumers with false or exaggerated facts.

Additionally, Eduwill was penalized for continuing discount events while advertising that the discount would end after the deadline. From February to March 2022, Eduwill sold online lecture products such as the "Public Enterprise Refund Class," advertising that discount coupons were available only until a specific period, but extended the deadline by holding the same event twice more. The Fair Trade Commission judged that such advertising made consumers anxious and induced purchases.

The Electronic Commerce Act prohibits businesses or telecommunication sales operators engaged in electronic commerce from attracting consumers by informing false or exaggerated facts or using deceptive methods. The Fair Trade Commission stated, "We will continue to monitor unfair advertising practices by online lecture providers and respond strictly when violations of the law are detected."