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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On the 24th, the Fair Trade Commission (FTC) clarified through a press release that "the investigation by the FTC is not a general regulation on all private label (PB) products, nor is it a regulation that prohibits the development and sale of PB products, thus exacerbating price burdens."
After concluding its investigation into allegations of unfair consumer incentives by Coupang at the end of last year, the FTC plans to convene a review meeting soon to determine whether sanctions are necessary and to what extent. According to FTC examiners who investigated the case, Coupang allegedly used its employees to write purchase reviews and manipulated algorithms to promote PB products at the top, misleading consumers.
Regarding the FTC's move towards sanctions, a certain elected official expressed concerns on their Facebook page, suggesting that the government, which previously withdrew its plans to regulate overseas direct purchases amid controversy, is now trying to stir up another issue by regulating PB products. They argued that meddling with PB products, which could help control prices, might lead to outdated policy decisions and urged the President to ensure proper oversight to prevent shortcomings in price management.
In response, the FTC countered that "this investigation aims to examine whether there were unfair practices deceiving consumers, in order to enable consumers to purchase affordable and high-quality products rationally." They added, "Specific facts and violations related to this case will be determined through a full committee review in the near future."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
