POSCO, which emphasized 'eco-friendliness' without objective grounds while selling steel products, has come under sanctions from the Fair Trade Commission.
On the 17th, the Fair Trade Commission announced it would impose corrective orders on POSCO and POSCO Holdings for exaggerating eco-friendliness in their labeling and advertising.
According to the Fair Trade Commission, POSCO used the term 'eco-friendly strong materials' in relation to its self-certified 'Inovilt' products on its website and in press releases.
'Inovilt' certification is an accreditation POSCO grants based on its own criteria when client companies process its steel into construction materials. However, the Fair Trade Commission explained that the proportion of eco-friendly elements in the evaluation criteria for this certification is very low, making it difficult to regard certified products as eco-friendly.
In addition to Inovilt, POSCO has marketed products under the brands 'e-autofos' and 'greenable' as part of its 'three major eco-friendly brands.' However, according to the Fair Trade Commission, e-autofos and greenable are simply strategic brands categorized for electric vehicles and wind energy facilities, and it is unreasonable to consider this as a basis for guaranteeing eco-friendliness.
The Fair Trade Commission determined that POSCO's advertising practices could mislead consumers, categorizing them as false and exaggerated advertising. A Fair Trade Commission official stated, 'We will thoroughly monitor related labeling and advertising to ensure consumers can select eco-friendly products based on accurate information.'
In response, a POSCO official said, 'We proactively ceased the use of the brand in August last year and will work to prevent similar cases in the future.'