Practice Areas
Our People
News & Resources
Book Consultation

Q
Views4,105
We are an online distribution company that sells electronic products. Recently, we received a request from a supplier to focus on selling only a specific product in exchange for their supporting our advertising costs. It feels like conditional support and is burdensome, and I am curious whether such conduct could constitute a fair trade violation. The supplier says it is merely marketing support, but might it not become a problem?
fair trade violation
Answer
Published:
Author : DongIl PARK
Hello. We provide legal consultation regarding fair trade violations.
The supplier's act of inducing the sale of only a specific product on the condition of advertising cost support may, depending on the circumstances, be judged to be an unfair customer-inducement act or a support act aimed at excluding competing businesses, so there is room for a fair trade violation.
The Fair Trade Act prohibits, as an unfair trade practice, a supplier's use of its transactional position to unfairly set trade terms for a distributor or to induce the distributor to handle only a specific product.
In particular, where financial support functions as consideration for the trade terms, it may be regarded as 'conditional support' and be judged unlawful.
In addition, from the distributor's standpoint as well, it may be subject to an investigation by the Fair Trade Commission, and if a fair trade violation is recognized, it may even lead to a corrective order, the imposition of a penalty surcharge, and, in serious cases, a criminal accusation.
In actual cases, if there are circumstances indicating that advertising costs or incentives were used as a means of 'blocking the sale of competing products,' the Fair Trade Commission seeks to prove the violation on the basis of electronic contracts, messenger records, emails, and the like.
Therefore, rather than simply complying with the supplier's request, it is necessary to organize, with objective materials, whether the trade terms are voluntary and whether they serve a legitimate commercial purpose.
In preparation for a future investigation, we recommend that you also secure the contract, records of the settlement of advertising costs, and sales guidelines.
Because the determination of the 'unfairness' of the conduct is important in a fair trade violation, whether legal liability arises varies depending on the circumstances before and after the transaction and its purpose.
If you have doubts, it is advisable to consult an attorney specializing in fair trade at an early stage to establish a response strategy.

Fair Trade 변호사
법률상담예약
모든 상담은 전문변호사가 사건 검토를 마친 뒤
전문적으로 진행하기에 예약제로 실시됩니다.
가급적 빠른 상담 예약을 권유드리며,
예약 시간 준수를 부탁드립니다.
만족스러운 상담을 위해 최선을 다하겠습니다.
전화
상담 1800-7905
365일 24시간
상담접수가능

카톡
상담
카카오톡채널
법무법인 대륜 변호사

온라인
상담
맞춤 법률서비스를
제공합니다.
All fields At a glance
1/0