“What if I don’t use genuine parts?” ‘False advertisements’ caught for 8 years by Hyundai Motor and Kia (comprehensive)

Hyundai-Kia (CG)

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The Fair Trade Commission discovered that Hyundai Motor Company and Kia Motors falsely advertised that if they do not use ‘genuine parts’ when repairing cars, they will break down.

Although these companies still have not corrected the indications pointed out for some car models, the Fair Trade Commission is expected to be criticized for ‘taking care’ as they only issue warnings, the lowest level of sanctions.

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◇ “If you use non-genuine parts, it will break” false advertisement… Only domestic consumers are pointed out as ‘hogaeng’

The Fair Trade Commission announced on the 12th that it will take warning measures once morest Hyundai Motor Company and Kia Motors for false or exaggerated advertisements regarding the performance of their genuine parts.

According to the FTC investigation result, Hyundai Motor and Kia Motors stated in the instruction manuals of their vehicles manufactured and sold from September 2012 to June 2020, ‘Only using genuine parts that are optimal for the vehicle can ensure safe and best performance. ‘, ‘The use of non-genuine parts may cause deterioration and malfunction of the vehicle’.

The car models covered are 23 Hyundai Motors, including Grandeur, Sonata, Avante, and G70, and 17 Kia models, including Ray, Morning, and K3.

The Fair Trade Commission judged that such labeling was false or exaggerated as if the quality or performance of all parts other than genuine parts was low and they were unsuitable for use.

The genuine parts used by Hyundai Motor Company and Kia Motors are being supplied by subcontractors to Hyundai Mobis, an affiliated company, through the original equipment manufacturer (OEM) method.

All other parts are called non-genuine parts.

Non-genuine parts include products from companies that supply to Hyundai Mobis. In other words, even though it is a product of the same performance produced by the same company, it was classified into genuine parts and non-genuine parts depending on whether or not the ‘Hyundai’ brand was attached, and falsely advertised that the risks are different.

In addition, standard products that meet domestic and foreign standards and certified replacement parts certified by a certification body designated by the Ministry of Land, Infrastructure and Transport to see if the quality is similar to OEM parts are also classified as non-genuine parts.

Unlike domestic vehicles sold by Hyundai and Kia overseas, such as the United States, only domestic consumers are treated as ‘hogaeng’ (a compound word of ‘hogu’ and ‘customer’) in that they only display ‘use of counterfeit, counterfeit, or defective products may result in poor performance or breakdown’. There are also opinions that it has been done.

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◇ Some car models still display false information, but the Fair Trade Commission is just a ‘warning’

It is estimated that Hyundai and Kia obtained great economic benefits by inducing consumers to purchase genuine parts with such false indications.

The Solidarity for Participation announced that as a result of examining the prices of six items, including air conditioner filters and headlights, in 2019, genuine parts and standard parts showed a price difference of up to five times despite the similar quality.

However, the level of sanctions imposed by the Fair Trade Commission is only the lowest warning, and controversy is inevitable.

The FTC sanctions include prosecution, the imposition of fines, correction orders, and warnings.

According to the ‘Rules on the Operation of Fair Committee Meetings and Case Procedures, etc.’, a warning may be issued when the degree of violation of the law is minor and when it is recognized that the corrective action has no real benefit by correcting the violation on its own.

The Fair Trade Commission (FTC) said that the reason for deciding to take warning measures for Hyundai Motor and Kia was that imported fake parts became a social problem in the early 2000s, and the mark was apparently used to urge consumers to be careful regarding the use of non-genuine parts, the FTC said.

Other reasons were also added, such as the fact that other domestic operators use similar marks and that the mark was deleted in the instruction manuals for new models released following November 2018.

However, considering the fact that, in the case of some car models such as Palisade and Starex, the problematic mark in the instruction manual was still not corrected, and the Fair Trade Commission judged only 8 years due to the statute of limitations under the Fair Trade Act, even though the period of illegal activity was longer. It is pointed out that at least a corrective order should have been issued.

In the case of a corrective order, if the accused (company) does not comply with the order, the prosecution can take action once morest it.

In fact, it is known that at the small meeting that dealt with this case, there was a fierce battle between the members of the committee on the level of sanctions.

Hyundai Motor and Kia said, “We respect the decision of the Fair Trade Commission and will continue to put consumer safety first.”

Regarding the point that the labeling is different from overseas markets, he said, “In the United States, there are many self-maintenance products, so I used the expressions such as counterfeit products and counterfeit products. Since then, even in Korea, the expression “non-genuine parts” has been omitted.”

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