[Wadiz] Transparency Report Vol.03

CASE 01 Issue Involving Misleading Claims Regarding Cosmetics and Dermatological Procedures

Beauty / Advertising Act · Cosmetics Act / Correction

01 · Detection

AI Monitoring

Identifies expressions that could be misinterpreted as suggesting the same effects as dermatological procedures through monitoring

02 · Review

Administrator Review · Content Revision

Based on the AI monitoring results, we reviewed the Story and Reward Details and revised any expressions that could be misinterpreted.

03 · Action

Request to Amend Story

In accordance with our operating policies, we have revised expressions within the Story that imply the same effects as dermatological procedures.

CASE 01 Detailed Case

A case where advertising led consumers to expect the effects of dermatological procedures

This is a case involving expressions that imply the same or similar effects as dermatological procedures, raising concerns about consumer misperception. Expressions that use images of dermatological procedures, medical devices, or ingredient ampoules to lead consumers to believe that a cosmetic product has the same effects as a dermatological procedure may constitute a violation of Article 13 of the “Cosmetics Act.”

CASE 02 Health Functional Foods · Misleading Claims

Food / Labeling and Advertising Act · Food Act / Amendment

01 · Detection

AI Monitoring

Identification of story ad expressions that could be mistaken for functional claims through monitoring

02 · Review

Operator Review · Data Supplementation

Based on the AI monitoring results, we reviewed the Story and Reward Details and corrected any expressions that could be mistaken for organic content.

03 · Action

Request to Revise Stories

Corrected expressions in the Story that could be mistaken for health functional foods, in accordance with operating policies

CASE 02 Detailed Case

Examples of Misleading Expressions for Health Functional Foods

This is a case where expressions implying health benefits or functions—such as UV protection, erythema suppression, and skin health improvement—were used for general food products. Since the product in question is part of the “Rewards” category for “inner beauty” or health-related foods, labeling general food products as having disease treatment, prevention, or functional benefits constitutes a type of advertising that may be restricted under Article 8 of the “Act on the Labeling and Advertising of Foods, etc.”

1. Reports of intellectual property infringement related to design and functionality

Report Details

A report regarding intellectual property infringement related to Rewards was received after a high degree of similarity was confirmed in terms of design, functionality, and other aspects compared to an existing product listed on wadiz.

Verification Results

Upon review, while similarities were identified in certain design and functional aspects, the structure of the handheld steam iron, its suction mechanism, and the depiction of wrinkle removal were confirmed to be elements commonly used within the industry. Furthermore, we advised that it was difficult to conclusively determine whether a specific design right or intellectual property right had been infringed based solely on the submitted report and materials, and that the matter required further verification by a specialized agency.

2. Report Regarding Unauthorized Use of Images

Details of the Report

A report alleging infringement of relevant intellectual property rights was filed, based on the suspicion that images from user reviews in the “Project Story” section were used as-is without any modification.

Findings

Upon investigation, it was confirmed that during the internal design process, an image from another brand was used as a reference but was uploaded without being replaced with an in-house image. Subsequently, the image in question was immediately removed from the product detail page, and it was confirmed that the original brand was contacted separately to inform them of the situation and offer an apology.

Directions for Operational Improvements

Based on the above case, wadiz will continue to strengthen its review of images and expressions used in project stories to prevent consumer confusion caused by the unauthorized use of others’ images, content, or designs.

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wadiz Transparency Report Vol. 02