Legal Q&A
Q
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We merely held an event to attract customers, but a competitor reported us to the Fair Trade Commission, alleging that we committed an unfair trade practice. However, since our company is very small, I am not sure whether we are responding appropriately to the Fair Trade Commission's investigation. If even an administrative fine is imposed, the company would be in a precarious situation. If it turns out that we committed an unfair trade practice, what measures follow?
Unfair trade practice
Unfair trade
Report of unfair trade
Answer
Published:
Author : DongIl PARK
Hello. I will explain unfair trade practices.
If unfair customer inducement is recognized and regarded as an unfair trade practice, and this is further found to be a violation of the Monopoly Regulation and Fair Trade Act, you may be subject to administrative sanctions such as a corrective measure and a penalty surcharge, as well as criminal punishment.
In particular, a person who commits an unfair trade practice may be sentenced to imprisonment for up to two years or a fine of up to 150 million won, so caution is needed.
Unfair trade practices include general unfair trade practices and specific unfair trade practices as provided in the Monopoly Regulation and Fair Trade Act.
In your case, it may be interpreted as unfair customer inducement and thus as a general unfair trade practice.
Unfair customer inducement refers to a case where a competitor's customers are unfairly induced to deal with oneself by using deception or the like.
In particular, unfair customer inducement may be established when customers are induced by means such as providing excessive benefits to them or obstructing the conclusion of a contract.
If you thus face the risk of punishment or an administrative disposition for an unfair trade practice, receiving help from an attorney with expertise in the relevant field may be a wise way to respond.

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