Fair Trade Commission Strengthens Crackdown on Illegal Door-to-Door Sales Companies as COVID-19 Infection Hotspots

[Asia Economy Reporter Kwon Haeyoung] The Fair Trade Commission (FTC) is strengthening crackdowns on illegal door-to-door sales companies, which are a major factor in the spread of the novel coronavirus infection (COVID-19).

The FTC announced on the 20th that over the past year, it has taken measures such as sanctioning mask sellers, conducting joint inspections of illegal door-to-door sales companies, on-site visits by ministers and vice ministers, and revising consumer dispute resolution standards to prevent the spread of COVID-19 and protect consumers from damage.

The FTC conducted joint inspections with local governments and the police on illegal door-to-door sales companies, identifying and sanctioning seven companies engaged in unregistered multi-level marketing activities and checking for violations of quarantine rules. As a result, it explained that the number of confirmed cases in the door-to-door sales sector has significantly decreased since the fourth quarter of last year.

Additionally, four online mask sellers were issued corrective orders for violations of the Electronic Commerce Act and fined a total of 60 million won. These companies were found to have falsely informed consumers that masks were sold out and canceled contracts despite having mask inventory.

Through on-site visits by ministers and vice ministers, the FTC listened to difficulties faced on the ground due to COVID-19, urged efforts to resolve disputes, and requested compliance with quarantine rules. It also revised consumer dispute resolution standards to promptly resolve penalty disputes in sectors such as wedding services, travel, accommodation, aviation, and dining caused by COVID-19 outbreaks.

An FTC official stated, "We plan to continuously and strictly respond to illegal door-to-door sales companies to prevent consumer damage and the spread of COVID-19," adding, "we will also strive to improve systems to ensure that penalty disputes between consumers and businesses arising from gathering bans and business restrictions to prevent COVID-19 spread are resolved quickly, preventing consumer damage."