
Legal Q&A
Q
Views4,183
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.

Daeryun's own AI·IT-driven litigation strategy
240+ key members
1,200+ client requests per month
* 2026년 1월 변호사협회 경유증표 발급 기준
In compliance with Article 4(1) of the Korean Bar Association Advertising Rules
Every consultation is reviewed by a specialist attorney first,
so consultations are conducted by appointment.
Phone
1800-7905
Available 24/7, 365 days a year


Online Consultation
Legal services
for our clients.

Chat
Get a quick consultation via chat.
Related Members
More
DongIl PARK
T. 070-5221-3616
Attorney Qualified as a Foreign Legal Consultant in Singapore · International Litigation/School Violence/Evidence Investigation Law Attorney
Key Case Results
MoreRelated Practice Areas
MoreAll fields At a glance
1/0