Intensive Investigation from April to July
Targeting Reports to Regional Offices
The Fair Trade Commission will focus on investigating unfair practices in franchise sectors such as chicken, coffee, and convenience stores.
On the 28th, the Fair Trade Commission announced that it will conduct a focused investigation from April to July into various reports of unfair practices in franchise sectors closely related to daily life, including Korean food, chicken, coffee, and convenience stores.
Among the reports submitted to local offices nationwide, a total of 32 cases were selected as subjects for prompt investigation, comprehensively considering available personnel and focusing on types of legal violations frequently reported.
The sectors under investigation include Korean food, chicken, pizza, coffee, wholesale household goods, beauty, and convenience stores, all closely related to the daily lives of the public.
The Fair Trade Commission explained, "Each local office will conduct focused investigations starting in April, including on-site inspections if necessary, for the reported cases."
In particular, companies found to have violated the law by engaging in acts such as ▲ concluding franchise contracts without providing the disclosure document to prospective franchisees ▲ providing false or exaggerated information regarding the expected sales range ▲ violating obligations to deposit and return franchise fees ▲ excessively designating mandatory items and forcing purchases ▲ conducting promotional events without prior consent from multiple parties and shifting costs to franchisees, plan to complete necessary measures (such as agenda submission) by July.
The Fair Trade Commission expressed its expectation that "through this prompt investigation, it will strictly respond to various unfair practices occurring in the franchise sector and contribute to establishing a fair trade order in the franchise field."
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