In order to get a reduction in the FTC fine, the act must be suspended until the end of the hearing.

The system has been improved to prevent abuse cases by cooperating with the Fair Trade Commission's investigation and continuing violations even after being reduced in fines.

The Fair Trade Commission said it will announce the administration of a revision to the notification of fines for the Display and Advertising Act.

Under the current labeling and advertising law, the cooperation reduction system allows violators to admit their actions until the FTC closes its investigation and deliberation, and to reduce fines by 20% if they submit data to help determine their illegality.

However, in the future, if we actively cooperate in the investigation, we will reduce the penalty by 10%, and if we actively cooperate in the deliberation stage and admit the act until the conclusion of the hearing, we will reduce the penalty by an additional 10%.

In addition, the fine can be finally reduced only when the act is suspended until the FTC hearing is over.

This is to prevent abuse of the system by continuing violations until the hearing is completely completed even after the FTC investigation recognized the violation and received a reduction in fines.

The FTC also clarified the basis for rational calculation of sales through objective data regarding the calculation of related sales.

Sales will be calculated in consideration of the performance before and after the violation, the total sales and the sales ratio of related products, and market conditions, and a flat penalty will be imposed only if sales cannot be calculated in this way.