[단독] CJ’Push out’…forced allocation of 100 sets of gifts to the VIPS manager

Input 2021.02.01 11:00

Sales allocation of millions of won per branch
Mobilize sales of gift sets to part-time students
CJ Foodville’s “No compulsory business activity”

CJ Foodville, a restaurant affiliated with CJ Group, has been forced to allocate 100 gift sets for the New Year to VIP stores nationwide.

According to the distribution industry on the 1st, CJ(001040)Foodville demanded that 34 VIPS branches across the country sell 100 VIPS Barbeque Poklip Gift Sets (Signature No. 1), a convenient restaurant meal (RMR), ahead of the Lunar New Year holidays. This set, consisting of 3 original barbecue pork ribs (450g), is sold at 49700 won. This means that sales of 4.97 million won per store were allocated.

In this situation, some branches were assigned to sell gift sets to part-time students. A VIPS manager who requested anonymity said, “Some stores were mobilized to sell gift sets even to college student part-timers. In another branch, the manager had to handle 100 sets alone.” “It’s the first time I’ve encountered this irrational practice while working (at CJ Foodville),” he added.

CJ Foodville’s allocation of futures sets is a violation of the’Monopoly Regulation and Fair Trade Act’ (Fair Trade Act). Article 23 of the Fair Trade Act stipulates against unfair acts such as’an act of unfairly using one’s trading position to do business with a counterparty’. It banned the push-out business that forced companies to purchase by using their dominant position.

If illegal activities are confirmed, the FTC may impose a fine on the relevant company or may file a prosecution complaint if the case is serious. A spokesman for the Fair Trade Commission Nam Dong-il said, “If CJ Foodville forced to push for business or purchase, it would violate Article 23 of the Fair Trade Act.”

Some point out that CJ Foodville, which is currently negotiating the sale, is taking an irrational number to increase the ransom. CJ Foodville’s capital erosion (total capital is less than paid-in capital due to the accumulation of deficits) has continued for several years. Currently, negotiations are underway on the sale of private equity fund Carlyle and bakery specialty store Tous Les Jours, as well as CJ Foodville. CJ sold a coffee shop Twosome Place to Private Equity Anchor Equity Partners in July of last year to prevent Foodville’s management from deteriorating.

Regarding this, Shin Hyo-jeong, head of CJ Foodville, said, “It is not a compulsory sale,” and said, “We want to sell with will as part of our sales promotion activities.”

Jeong-gyu Won, a lawyer at the Law Office of Choi Jung-gyu, said, “If a company sets a quota and pushes in (products), it is difficult to raise a problem from the point of view of the store manager in reality.” “There are many”.