1. Overview of the Case
A small and medium-sized beauty company confirmed that a third-party marketing firm had posted advertising material online that misappropriated, without authorization, the product name of a functional shampoo product the company manufactures and sells, and was concerned about serious harm from damage to its brand image and consumer confusion. The advertisement was posted in a way that distorted the facts, as if the firm had actually carried out the marketing of this product successfully, and its intent to exaggerate the credibility of its own marketing services and to induce new contracts was clear. After confirming these facts on its own, the client requested the firm to voluntarily correct the matter, but did not receive a clear apology or reasonable measures, and the firm repeatedly responded without sincerity, doing no more than partially editing some of the posts. Accordingly, the client retained Your Legal Team for legal representation, and we immediately commenced legal action.
2. Key Issues and Response
The core issues in this case were the following three. We focused on the fact that the problematic posts specified a concrete product name to the extent that it could cause consumer confusion, and falsely described marketing results that did not exist. We notified a strong demand for correction, on the grounds that this constitutes a violation of Article 3 of the Act on Fair Labeling and Advertising, and that there is a high possibility of a report to the Fair Trade Commission and a criminal complaint.
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Whether it constitutes deceptive advertising under the Act on Fair Labeling and Advertising
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Whether there is unauthorized use and a violation of fair competition order under the Unfair Competition Prevention Act
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The possibility of a civil claim for damages based on tort
Your Legal Team focused on the fact that the problematic posts specified a concrete product name to the extent that it could cause consumer confusion, and falsely described marketing results that did not exist. We notified a strong demand for correction, on the grounds that this constitutes a violation of Article 3 of the Act on Fair Labeling and Advertising, and that there is a high possibility of a report to the Fair Trade Commission and a criminal complaint. In addition, we determined that the method of including a specific shampoo product name in the title to induce search traffic and of highlighting false success cases constitutes an act of unfair competition under Article 2, item 1 of the Unfair Competition Prevention Act. Accordingly, we warned of comprehensive legal measures including not only a claim for damages but also preservation measures such as a prior provisional seizure, and sent a content-certified letter that clearly stated tort liability based on Article 750 of the Civil Act and included concrete demands for the recovery of harm and the restoration of the brand image (deletion of the posts, publication of an apology, and monetary compensation).
3. Results and Significance
Through Your Legal Team's clear and firm advance notice of legal measures, the client was able to continue its product marketing normally, without any further risk of illegal brand misappropriation or damage to its image. In addition, having completed advance preparations for civil and criminal procedures where necessary, the client established a foundation for the full recovery of its rights. This case is a representative example in which a law firm drew out an effective response at the level of a prior warning to a deceptive advertising and unauthorized marketing case that can commonly occur in the online environment. In particular, since brand image and consumer trust are assets of the utmost importance to startups and small and medium-sized enterprises, defending them through legal measures can be decisive for the company's survival.