Fair Trade Commission "Conditions for Consent Decision Not Met Due to Seriousness of Act and Public Interest Compliance"
Riman Korea, which has been under investigation by the Fair Trade Commission for violations of the Door-to-Door Sales Act, expressed its intention to voluntarily correct the issues on the condition that it would not face the Commission's judgment, but this was not accepted.
On the 30th, the Fair Trade Commission announced that it had decided to dismiss Riman Korea's application to initiate the consent decree procedure related to violations of the Door-to-Door Sales Act. The Commission stated, "Through last month's committee deliberation, considering the seriousness of the act and its alignment with public interest comprehensively, it was judged that this application does not meet the requirements to initiate the consent decree procedure."
The consent decree is a system that allows for the swift conclusion of cases without determining legal violations, based on the company's voluntary correction and victim relief. Previously, Riman Korea applied to the Fair Trade Commission on April 25 to initiate the consent decree procedure.
Riman Korea ranks between first and third in the industry based on the number of sales representatives (440,646) and sales revenue (426.6 billion KRW), and despite being a multi-level marketing company selling cosmetics such as Inceldom and Botalab, it registered and operated as a sponsor door-to-door sales business.
According to the Fair Trade Commission, Riman Korea was found to have operated using a stepwise sales organization composed of education implementing company branch managers, agency heads, and sales representatives, conducting business through a multi-level marketing method.
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