Moving companies that falsely advertised as offering the "lowest prices nationwide" and inflated the number of inquiries to appear as actual users are facing penalties from regulatory authorities.
The Fair Trade Commission announced on September 29 that it has imposed corrective orders and a total fine of 219 million won ($219,000) on Rosen Moving and Good Moving for misleading advertisements regarding their service prices, user numbers, and quality. The fines are 132 million won for Good Moving and 87 million won for Rosen Moving.
Good Moving advertised from February 2021 to April 2023 on its website and blog, claiming to offer the "lowest prices nationwide," "minimum discounts for all types of moves," and "the most affordable moving service." However, the Fair Trade Commission found no objective evidence to support the claim that it provided the lowest prices in the industry. The commission determined that the advertisements could mislead consumers into believing they were getting a better deal than with other companies.
Rosen Moving faced issues related to its quality claims. From January 2021 to May 2023, the company used phrases like "No. 1 moving brand in Korea" and "highest customer satisfaction in Korea" in its online and search advertisements. While these phrases referred to awards received from specific organizations, the advertisements did not disclose the awarding bodies, evaluation criteria, or methods of selection. The Fair Trade Commission concluded that consumers could mistakenly believe that Rosen Moving's service quality was rated the highest in the industry.
Additionally, both companies were found to have inflated the number of actual users in their advertisements. Good Moving reported cumulative consultation numbers from October 2024 to April 2023 in its search ads, while Rosen Moving displayed inquiry numbers on its website from January 2021 to May 2023. The commission ruled that they misrepresented consumers who only inquired about services as actual customers.
The Fair Trade Commission's investigation into unfair advertising in the moving service sector was prompted by a rise in consumer complaints. The Korea Consumer Agency reported that the number of claims related to moving services increased from 603 in 2023 to 785 in 2024, and reached 961 last year. This marks a rise of 358 claims in just two years compared to 2023.
The commission explained that since consumers cannot verify service quality before using moving services, information regarding price, user numbers, and quality significantly influences their choices.
The Fair Trade Commission stated, "This action has established a foundation for consumers to compare moving service providers based on accurate information and make informed choices. We will continue to monitor unfair advertising in areas closely related to everyday consumer life and impose strict penalties for violations."
* This article has been translated by AI.
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