In a collaborative investigation, the Korea Consumer Agency and the Korean Intellectual Property Office uncovered a total of 634 instances of false labeling related to intellectual property rights in cosmetics sold online. This effort was prompted by the high proportion of non-face-to-face purchases of cosmetics, emphasizing the need for accurate information on ingredients, functions, and effects.
The investigation revealed that false claims regarding 'patented ingredients' significantly impact consumer choices, leading to heightened attention from both agencies. The reports show that 98.7% of the detected cases were related to false patent claims, with the remaining cases involving design rights (0.9%) and utility model rights and trademarks (0.2% each).
The types of false labeling identified indicated that 81.1% of the violations involved products falsely claiming to have expired rights as valid, while 11.5% exhibited incorrect reporting of non-existent rights numbers. Furthermore, 4.7% included claims of pending applications for products that were not actually filed.
Product categories with the highest rates of false claims included hair care (38.2%), skin care (15.3%), body care (14.3%), and cleansing products (10.6%). This trend suggests that products emphasizing functional effects or specific ingredients are more likely to engage in misleading intellectual property claims to stimulate consumer purchasing behavior.
This joint investigation was conducted under a memorandum of understanding between the Korea Consumer Agency and the Korean Intellectual Property Office, marking the second such effort after a similar review of kitchenware products last year. Notably, the involvement of the public in identifying false claims added significant relevance to the findings.
The 'Citizen Advertising Monitoring Group' trained to recognize appropriate labeling methods and key violations actively participated in identifying suspicious cases on major online shopping platforms. Consequently, the number of detected cases increased by 85.9% compared to a previous solo investigation conducted by the Korean Intellectual Property Office in the first quarter of this year.
The activities of the Citizen Advertising Monitoring Group are expected to enhance public understanding and interest in accurate intellectual property labeling, fostering awareness of its significance. The Korean Intellectual Property Office has initiated corrective guidance for the 634 detected cases and has implemented measures for ongoing management of violations by sellers, allowing for administrative investigations should similar false claims arise again.
The Korea Consumer Agency plans to continue its surveillance efforts in close cooperation with the Korean Intellectual Property Office to monitor false labeling practices related to consumer-relevant products.
