Lotte ON Implements 'Trust ON' Program to Strengthen Luxury Goods Trust Starting from the 6th
Prevents Damage from Counterfeit Products in Advance and Establishes Standardized Relief Procedures
Compensation of Twice the Sales Amount for Confirmed Counterfeit Products Among Trust ON Certified Items
[Asia Economy Reporter Kim Yuri] Lotte ON announced that starting from the 6th, it will implement the 'Trust ON' program to enhance the trustworthiness of luxury goods sold by external sellers (parallel importers).
As more customers purchase luxury goods through online malls recently, cases of damage caused by counterfeit products have also increased. According to the Korean Intellectual Property Office, the number of online counterfeit product reports reached approximately 17,000 last year. In particular, parallel imported products are difficult to trace the product history and verify authenticity, resulting in many damage cases and difficulties in receiving compensation.
Lotte ON stated that it is introducing the 'Trust ON' program to prevent damage from counterfeit products in advance and to provide compensation through standardized procedures if problems occur. The Trust ON program operates with the participation of three parties: Lotte ON, sellers, and external partner organizations. Due to the nature of parallel imported products, two verification steps?distribution flow verification and product authenticity verification?must be conducted simultaneously.
Before product registration, Lotte ON conducts seller inspections and performs real-time monitoring and sample inspections during the sales process. Sellers agree to sell 100% genuine products and attach the Trust ON certification to their products, providing documents that prove authenticity. Finally, when damage reports are received, Lotte ON collaborates with external organizations such as the Trade-Related Intellectual Property Protection Association (TIPA) and the Korea Luxury Appraisal Institute to conduct prompt and objective product inspections and share information. Additionally, a compensation system is operated that pays twice the purchase amount if counterfeit product damage is confirmed among Trust ON certified products.
Currently, 75 luxury goods sellers are participating in the Lotte ON Trust ON program, with about 120,000 luxury items certified and sold under Trust ON. Lotte ON plans to gradually expand the number of sellers participating in the Trust ON program.
With the recent growth of the luxury parallel import market, Lotte ON expects the Trust ON program to contribute to maintaining order in the parallel market. It is also anticipated to serve as a foundation for Lotte ON to grow into a healthy platform that builds and maintains trust between customers and sellers.
Kim Young-jun, head of the luxury team at Lotte ON, said, "As more customers purchase luxury goods online, trust in product authenticity has become an important criterion for choosing shopping platforms. Since Lotte ON is expanding its luxury product lineup through parallel imports, we expect Trust ON to play a crucial role in enhancing customer trust."
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