Neoph secretly paid 237 influencers to post reviews — KFTC ordered it to stop

Neoph, a South Korean advertising agency formerly called Urban Fast, ran a service that disguised paid influencer recommendations as genuine consumer posts. It recruited 237 influencers through its KakaoTalk channels and told them outright not to mark the posts as ads.

The influencers were paid in free meals or copywriting fees of 50,000-100,000 won, but the disclosure of the economic relationship that the law requires was deliberately left off. Neoph even contacted influencers to take down any disclosure posted by mistake.

Over roughly three and a half years (July 2020 to December 2023) the operation produced 2,337 undisclosed ads for 209 advertisers across food, lodging and other categories.

The Korea Fair Trade Commission ruled the posts deceptive advertising under the Fair Labeling and Advertising Act and issued a corrective order. Because Neoph halted the service during the investigation and deleted the posts itself, it escaped a fine.