The Fair Trade Commission announces a distribution survey… Until payment delays and disadvantages are transferred to sales promotion costs
Online shopping malls represented by Coupang, Wemakep, and Timon showed the highest rate of unfair behavior. Even in the non-face-to-face distribution business, T-commerce and TV home shopping, the overall rate of unfair behavior was high.
According to the Fair Trade Commission (FTC) on the 1st, as a result of the ‘2020 written survey on the distribution sector’, the rate of experience in unfair practices was relatively high in terms of non- or delayed payment of product sales, provision of disadvantages, and transfer of sales promotion costs.
First of all, 3.8% of the experience in unfair practices of’non-delayed payment of product sales price’, such as not receiving payment for product sales or receiving payment after 40 days from the monthly sales deadline, was found. By business type, online shopping malls were the highest at 9.1%. This was followed by department stores at 2.3% and outlets at 2.1%.
3.2% of them experienced “disadvantageous provision” that allowed them to purchase gift certificates or goods without justifiable reason or deliver them at a price that is significantly lower than the delivery price in the normal market. Online shopping malls were the highest with 4.9%, followed by T-commerce 4.7% and TV home shopping 4.0%.
During promotional events, 2.5% of experience in unfair practices such as’passing sales promotion costs’ such as having no prior written agreement or paying more than the legal standard for sales promotion expenses was found. Again, online shopping malls were the highest at 5.0%. T-commerce followed with 4.2% and department stores with 2.3%.
An official from the Fair Trade Commission said, “As the percentage of unfair practices in unfair or delayed payment of product sales is the highest, we will introduce the payment deadline, which was stipulated only for special contract purchase transactions, to direct purchase transactions, and promote the revision of the Large-scale Distribution Business Act.
In addition, he said, “In view of the high overall rate of unfair experience in online shopping malls, we will reinforce publicity and provide training on the guidelines for evaluating unfair trade practices of online shopping mall operators.”
However, overall, it was found that the overall trading practices in the distribution sector have improved. In fact, 93.0% of respondents said that the unfair trade behavior of large-scale retailers improved compared to the previous year. It is analyzed that the continuous improvement of the government’s system and the win-win cooperation between the distribution and supply industry had a positive effect.
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