Korea’s Fair Trade Commission will penalize the country’s four leading online shopping malls for deceptive display of products, the antitrust watchdog said Monday.

The firms ― Gmarket, Auction, Interpark and 11st ― have been under investigation for allegedly labeling products as “best goods” or placing them at the top of their respective websites in exchange for advertising fees.

“The FTC is in the final stage of completing an investigation into the unfair practices of online marketplaces. We are planning to wrap up the probe and decide the level of punishment within this year,” an FTC official said.

The firms could face fines or correction orders depending on the final decision taken, according to the FTC.

The inquiry stems from a wider review by the watchdog into the 14.3 trillion won ($12.2 billion) industry following allegations of false and exaggerated advertisements since June this year.

Last year, the online sales from advertisements stood at 283.5 billion won.

The FTC said the business practice could mislead consumers into thinking the paid products displayed in the top section of webpages are better quality items or more popular than other commodities not promoted.

By Park Han-na (hnpark@heraldcorp.com)