In the 'online platform era', regulations such as abuse of fees begin... How do you respond to reports of unfair transactions?
With the launch of the new government, major changes were predicted in the field of fair trade. As President Lee Jae-myung ordered the Fair Trade Commission (FTC) to increase its workforce immediately after taking office, attention is focused on expanding the role of the Fair Trade Commission. The background to this order is the accumulated suffering of small business owners. This is because the burden has increased as large platform companies such as e-commerce and delivery apps continue to impose excessive fees and unfair transaction practices. This is not the first time that voices for regulation surrounding online platforms have emerged. The Small Business Association and the People's Solidarity for Participatory Democracy have already been demanding the establishment of a fair trading order by demanding the enactment of the ‘Online Platform Fairness Act (hereinafter referred to as the Online Platform Act)’ since 2020. The ONPL Act contains regulations on abuse of market power, unfair trade, and monopoly issues by platform companies. Previously, President Lee also pledged to enact the ONPL Act, emphasizing that he would protect stores and prevent monopoly and abuse of monopolistic positions by large platforms at home and abroad. In fact, according to the Fair Trade Commission’s ‘2024 Statistical Yearbook’ last year, the number of cases handled by the Fair Trade Commission was a total of 2,496. Among these, there were 124 cases in which fines were imposed, and the total fine amount was 422.7 billion won. Looking at the types of legal violations, unfair trade practices accounted for the largest proportion at KRW 212.3 billion, followed by unfair collaborative practices (KRW 170.1 billion). Accordingly, it is expected that large-scale investigations related to platform unfair trade practices will continue. However, there is currently no law that directly applies to online platforms, so as long as the Fair Trade Act has the nature of a general law, it is expected to be governed by the Fair Trade Act until the ONPL Act is enacted. In general, the Fair Trade Commission can conduct necessary investigations ex officio when it determines that there is a suspicion of violating the provisions of the Fair Trade Act. In addition, anyone can report violations of the law, and reports can be submitted in a variety of ways, such as through the official website or by visiting the Fair Trade Commission's civil affairs office. Usually, when a violation of the law is discovered, a public official (examiner) is appointed to review it and an investigation is conducted. At the case investigation/examination stage, if necessary, ① the attendance and hearing of the opinions of the parties, stakeholders, or witnesses, ② the designation of an appraiser and commission of an appraisal, ③ the business operator, business organization, or executive/employee may be ordered to report on costs and management status and submit other necessary data or items. Here, the Fair Trade Commission's investigation is legally an administrative investigation and has the nature of a discretionary investigation, but in reality, it carries with it a certain degree of coercion. Therefore, in case of refusal or obstruction of the investigation, fines, enforcement fines, and criminal penalties may be imposed. The Fair Trade Commission's deliberation procedures are based on the principle of ex officio structure. The hearing is based on an oral hearing, and if necessary, a written hearing is conducted. Once the deliberation process for the case is completed, agreement and resolution procedures among the meeting members proceed. In addition, if you are dissatisfied with the Fair Trade Commission's disposition, you can go through procedures such as the right to request access to data, an objection, and an appeal. Attorney Jeong Woo-young of Daeryun Law Firm said, "If you are the subject of an investigation by the Fair Trade Commission due to unfair trade practices, etc., you should not arbitrarily delete or hide data. It is good to show cooperation in the investigation. You can receive assistance from a lawyer during the investigation process, so we recommend that you actively utilize it. In particular, Fair Trade Commission cases proceed similarly to criminal cases. “Due to the nature of fair trade-related law, it is a specialized and specialized area, so it is better to submit an opinion through a lawyer,” he advised. He continued, “If you are a reporter, you must secure data that can confirm the violation of the law.” He added, “It may be difficult to collect related data, so it is important to find a legal expert to proceed with the investigation and mediation process.” Gayoung Jin, lawissue reporter (news@lawissue.co.kr)[View full article]
In the 'online platform era', regulations such as abuse of fees begin... How do you respond to reports of unfair transactions? (Shortcut)