Agency & franchise and distribution ‘Exclusive belongingness right’ strand…Penalty to be up 2 times
Kwon Dae Gyung | kwon213@ | 2017-11-13 10:04:32
FTC law enforcement system TF interim announcement
There will be a way for civic groups and consumers to accuse the prosecutors of the "ghosts" of affiliation, distribution, and agency in the future. The level of imposition of penalties will be doubled, and the punitive damages system will be applied, but the conclusion will soon be reached as to whether the amount of damages will be up to 10 times.
The Korea Fair Trade Commission released an interim report on the issue of `Fair Trade Law Enforcement Task Force (TF)` on November 12.
According to the report, first of all, it is possible to abolish the exclusive exemption law applied to the existing six laws (Fair Trade Act, Subcontract Act, Large-scale Retail Business Act, Affiliate Business Act, Agency Law, and Display Advertising Act) . If it is urgent to eradicate unfair practices arising from the relationship between the parties, and if it is not necessary to analyze the effect of the high competition restrictions when judging the illegality, the three laws will be abolished. The exclusive right to prosecute is a system in which the prosecution can file a complaint only if there is a complaint by the FTC. Although the abuse of abuse was introduced in 1980 due to the claim that the economic activity of the company was excessively restricted, the abolition claim was abundant because there were a lot of recent cases of the fair law cases and the fact that the public executive system based on the current administrative measures is limited. However, the TF decided to eliminate exclusivity from only three laws based on criteria such as the need for penal sanctions, the degree of demand for economic analysis when it is illegal, the impact on SMEs when they are abolished, and the level of legal maintenance. However, the subcontract law and the Advertising Act are abolished, and some opinions such as the abolishment and some opinions are presented.
The amount of the fines also doubles. It is based on the judgment that the effect of suppressing the violation of the law is insignificant because the upper limit of 20 years is too low since the imposition rate of penalties for some items was adjusted in 2004, Fixed collateral is raised from 10% to 20%, market dominant position abuse is adjusted from 3% to 6%, and unfair trade practices from 2% to 4%.
Especially, attention is focused on the results of the introduction of punitive damages. Although the punitive damages system has been introduced in the subcontracting and affiliation laws, it has been pointed out that the TF should be introduced into the Fair Trade Act and the Distribution Industry Act and should be applied to the existing laws. However, the TF said that the scope of the specific introduction and the amount of compensation were disrupted. In other words, it is suggested that the compensation amount should be less than three times the amount of damages as in the present case, and the two suggestions should be raised to less than ten times of the damages in case of intentional act.
A representative of the FTC said, "We will organize the position after the additional discussions, and the final confirmation plan will be announced through the final report in January next year."
In addition, the TF has decided to introduce a bill for the prohibition of signing. In the meantime, there was no objection to the decision by the FTC, but it would be possible to bring a lawsuit to the court that a consumer or a company damaged by the introduction of a bill for the prohibition of auto-growing would not be allowed to go through the FTC and prohibit unfair practices.
Besides, it is difficult to prevent the unfair damage of SMEs and small business owners nationwide by the FTC staff only, so that the right of inquiry and disposition is granted to 17 wide-area local governments as delegation and sharing method only in affiliated areas where there is a great demand for administration among subcontractors, distributors, agents and subcontractors.
Saejong city= By Kwon Dae Gyung kwon213@
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There will be a way for civic groups and consumers to accuse the prosecutors of the "ghosts" of affiliation, distribution, and agency in the future. The level of imposition of penalties will be doubled, and the punitive damages system will be applied, but the conclusion will soon be reached as to whether the amount of damages will be up to 10 times.
The Korea Fair Trade Commission released an interim report on the issue of `Fair Trade Law Enforcement Task Force (TF)` on November 12.
According to the report, first of all, it is possible to abolish the exclusive exemption law applied to the existing six laws (Fair Trade Act, Subcontract Act, Large-scale Retail Business Act, Affiliate Business Act, Agency Law, and Display Advertising Act) . If it is urgent to eradicate unfair practices arising from the relationship between the parties, and if it is not necessary to analyze the effect of the high competition restrictions when judging the illegality, the three laws will be abolished. The exclusive right to prosecute is a system in which the prosecution can file a complaint only if there is a complaint by the FTC. Although the abuse of abuse was introduced in 1980 due to the claim that the economic activity of the company was excessively restricted, the abolition claim was abundant because there were a lot of recent cases of the fair law cases and the fact that the public executive system based on the current administrative measures is limited. However, the TF decided to eliminate exclusivity from only three laws based on criteria such as the need for penal sanctions, the degree of demand for economic analysis when it is illegal, the impact on SMEs when they are abolished, and the level of legal maintenance. However, the subcontract law and the Advertising Act are abolished, and some opinions such as the abolishment and some opinions are presented.
The amount of the fines also doubles. It is based on the judgment that the effect of suppressing the violation of the law is insignificant because the upper limit of 20 years is too low since the imposition rate of penalties for some items was adjusted in 2004, Fixed collateral is raised from 10% to 20%, market dominant position abuse is adjusted from 3% to 6%, and unfair trade practices from 2% to 4%.
Especially, attention is focused on the results of the introduction of punitive damages. Although the punitive damages system has been introduced in the subcontracting and affiliation laws, it has been pointed out that the TF should be introduced into the Fair Trade Act and the Distribution Industry Act and should be applied to the existing laws. However, the TF said that the scope of the specific introduction and the amount of compensation were disrupted. In other words, it is suggested that the compensation amount should be less than three times the amount of damages as in the present case, and the two suggestions should be raised to less than ten times of the damages in case of intentional act.
A representative of the FTC said, "We will organize the position after the additional discussions, and the final confirmation plan will be announced through the final report in January next year."
In addition, the TF has decided to introduce a bill for the prohibition of signing. In the meantime, there was no objection to the decision by the FTC, but it would be possible to bring a lawsuit to the court that a consumer or a company damaged by the introduction of a bill for the prohibition of auto-growing would not be allowed to go through the FTC and prohibit unfair practices.
Besides, it is difficult to prevent the unfair damage of SMEs and small business owners nationwide by the FTC staff only, so that the right of inquiry and disposition is granted to 17 wide-area local governments as delegation and sharing method only in affiliated areas where there is a great demand for administration among subcontractors, distributors, agents and subcontractors.
Saejong city= By Kwon Dae Gyung kwon213@