Park Yong In of Urban Zakapa has been handed a suspended prison sentence for falsely advertising 'butter beer'.
In a recent verdict from the Seoul Eastern District Court, Park Yong In, a member of Urban Zakapa and CEO of licensing agency Virtual Company, received an eight-month suspended prison term for breaching South Korea's Food Labeling and Advertising Act. Additionally, Virtual Company was fined 10 million KRW (approximately 7,000 USD).
The controversy stemmed from the misleading promotion of a beer product labeled as "butter beer" despite lacking butter in its ingredients. Between May 2022 and January 2023, Park's company distributed the product in various retail outlets, creating the impression that butter was a key component through social media posts and posters.
According to the court, the prominently displayed term 'BEURRE' (French for butter) misled consumers into believing that the beverage contained butter, constituting deceptive advertising. The court criticized the company for attempting to downplay the issue by falsely asserting that all their products featured butter post-indictment, damaging consumer trust.
However, considering Park's clean record and the company's corrective actions post-violation, the court decided on a suspended sentence rather than immediate imprisonment.
This case serves as a reminder of the importance of transparent and truthful advertising practices in preserving consumer trust and fair trade standards.