Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
FTC sanctions POSCO for deceptive eco-friendly marketing
POSCO headquarters in Pohang, North Gyeongsang Province / Courtesy of POSCO
By Lee Min-hyung
The Fair Trade Commission (FTC) ordered POSCO and POSCO Holdings to rectify their deceptive eco-friendly marketing campaign on Thursday.
The nation's top antitrust watchdog said the steelmaker promoted products certified under its "INNOVILT" label as eco-friendly construction materials without evidence. The company also advertised two other brands, e Autopos and Greenable, as eco-friendly, despite lacking evidence of their environmental contributions.
The “INNOVILT” certification is granted to construction materials made from POSCO that meet certain criteria. However, the FTC noted that environmental sustainability plays only a minor role in the assessment, making it inappropriate to market certified products as eco-friendly.
Furthermore, the agency said that “e Autopos” and “Greenable” are strategic labels for steel products used in electric vehicles and wind energy equipment, respectively. However, they do not involve unique or separate steel materials exclusive to those brands.
The FTC determined that POSCO’s actions constituted false and exaggerated advertising by implying that the company was taking specific steps to contribute to environmental sustainability. This may mislead consumers into believing that “INNOVILT” steel is inherently eco-friendly and that the three brands offer products with enhanced environmental performance, potentially disrupting fair competition in the construction steel market.
The commission emphasized the misleading use of broad terms such as “eco-friendly” could distort consumer perception and violate fair trade rules.
“This case is significant as it addresses deceptive environmental claims that hinder rational consumer choices,” the FTC said in a statement. “We will continue monitoring green advertising practices to ensure compliance with laws and promote a trustworthy consumption environment.”
POSCO said it suspended the operation of the brands in August last year upon the order from the FTC.
“We will hold additional education programs for executives and employees to prevent the recurrence of the latest incident,” an official from POSCO said.