KFTC Sanctions Companies for False Down and Cashmere Claims

South Korea’s Fair Trade Commission (KFTC) has imposed sanctions on multiple companies for making false claims about down and cashmere products, highlighting growing concerns about misleading labeling practices in the textile industry.

The watchdog announced penalties against several manufacturers and retailers who marketed products as containing premium materials that, upon inspection, contained significantly less of those materials than advertised or, in some cases, none at all.

Among the sanctioned companies was a major department store chain that sold jackets labeled as “90% down” when laboratory tests revealed actual down content of only 70%. The retailer has been ordered to correct its marketing materials and issue refunds to affected customers.

Another case involved a clothing manufacturer that marketed sweaters as “100% cashmere” when the products actually contained substantial amounts of wool and synthetic fibers. The KFTC noted that cashmere, derived from cashmere goats primarily in Mongolia and parts of China, commands premium prices due to its softness and insulating properties, making it a frequent target for misrepresentation.

“Consumers pay premium prices for natural materials like down and cashmere specifically for their superior qualities,” said a KFTC spokesperson. “When companies falsely claim product composition, they not only deceive customers but also gain unfair competitive advantages in the marketplace.”

The sanctions come amid increasing global scrutiny of textile labeling practices. Down products, which use the soft underlayer of feathers from ducks or geese, have seen particularly high rates of fraudulent claims in recent years. Industry experts note that the significant price difference between high-grade down and lower-quality alternatives creates strong financial incentives for misrepresentation.

Consumer advocates have welcomed the KFTC’s action. Kim Min-ji of the Korean Consumer Protection Association said: “These sanctions send an important message to the industry. Consumers have the right to know exactly what they’re paying for, especially when it comes to premium materials that command higher prices.”

The crackdown follows similar actions in Europe and North America, where authorities have increasingly targeted misleading claims about natural fiber content. Last year, Italian regulators fined several luxury brands for cashmere misrepresentation, while Canadian authorities implemented stricter down verification requirements following widespread testing failures.

Market analysts suggest the sanctions could have broader implications for South Korea’s textile and retail industries. Lee Sung-ho, a retail sector analyst at Hana Financial Investment, noted: “These penalties will likely prompt many companies to review their supply chains and testing procedures. We may see increased costs for verification, but also potentially higher consumer confidence in product claims over the long term.”

South Korea’s textile industry, valued at approximately 20 trillion won (US$15 billion), has been working to position itself in higher-value segments of the global market. The country’s exports of premium textiles and garments have grown steadily over the past five years, with a particular focus on technical fabrics and luxury materials.

The KFTC has ordered the sanctioned companies to implement corrective measures within 30 days, including accurate relabeling of products, customer notifications, and revising marketing materials. Financial penalties were also imposed, though the exact amounts were not disclosed in the initial announcement.

In response to the sanctions, the Korea Textile Association issued a statement pledging to work with its members to improve verification processes and ensure compliance with labeling regulations. The association also announced plans to introduce a voluntary certification program for natural fiber content claims.

Industry observers note that detecting fraudulent material claims often requires sophisticated testing methods. Down content analysis typically involves separating and weighing different components, while cashmere verification may require microscopic fiber examination or chemical testing to distinguish it from less expensive wools.

The KFTC indicated that it would continue monitoring the market for similar violations, with additional inspections planned for other premium textile products, including silk, merino wool, and organic cotton claims.