[Sejong=Asia Economy Reporter Joo Sang-don] Agricultural corporation TCR, which sold products such as germinated brown rice through a multi-level marketing method without registering as a multi-level marketing business operator, has been sanctioned by the Fair Trade Commission.
On the 16th, the Fair Trade Commission announced that it had decided to issue a corrective order against TCR for violating the "Act on Door-to-Door Sales, etc."
According to the Fair Trade Commission, TCR sold products using a multi-level marketing method from April 8 of last year until the date of review without registering as a multi-level marketing business operator with the relevant city/provincial governor (Governor of Chungcheongnam-do). The Door-to-Door Sales Act requires multi-level marketing business operators to register with the relevant city/provincial governor.
Accordingly, the Fair Trade Commission issued an order to cease multi-level marketing activities. However, if TCR wishes to continue multi-level marketing business, it was ordered to register as a multi-level marketing business operator with the relevant city/provincial governor within 90 days from the date of receiving the corrective order notification.
A Fair Trade Commission official stated, "This measure is expected to contribute to improving illegal multi-level marketing methods by correcting the act of selling products through multi-level marketing without complying with the registration obligation under related laws," and added, "The Fair Trade Commission will continue to strengthen monitoring of illegal multi-level marketing activities and make ongoing efforts to prevent consumer damage and promote reporting."
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