In the future, online shopping mall operators will be punished for violating the law if they pass the cost of repackaging returned products or return shipping to the supplier. It is also prohibited to pass on the burden of sales promotion costs to suppliers.
The Fair Trade Commission announced on the 31st that the’Guidelines for Examining Unfair Trade Behavior of Online Shopping Mall Operators’ containing the above contents will be enacted and will be implemented from the 1st of next month.
In addition to the existing’Act on Fair Transactions in Large-scale Distribution Businesses’, which are prescribed by assuming offline transactions, the screening guidelines specified standards for major unfair trade practices occurring in the online shopping market that has recently grown rapidly.
The guidelines prevented online shopping malls from returning products to suppliers without justifiable reasons. If the consumer cancels the purchase due to a simple change of mind, it may violate the law if the product is returned to the supplier even though there is no separate agreement.
Online shopping malls were prevented from requesting economic benefits such as money, goods, and services from suppliers without justifiable reasons. If an online shopping mall receives money in the name of advertising fees and server fees from suppliers to compensate for the shortage of sales commission income due to competition for the lowest price, it can be considered as a violation of the relevant regulations.
In addition, online shopping malls must not set or change the terms of transactions with suppliers without justifiable reasons or give disadvantages to suppliers in the process of implementation. If an online shopping mall allows a supplier to use its own paid services such as delivery and refuses to do so, it may violate the law if the supplier’s product search ranking is lowered.
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In addition, the Fair Trade Commission specifically stipulated in the review guidelines the prohibition of transferring the burden of sales promotion costs and the prohibition of requesting the provision of management information.
An official from the FTC said, “By enacting the review guidelines, we will give online shopping mall operators an opportunity to voluntarily correct unfair trade practices, and increase the transparency and consistency of law enforcement.” We plan to make an effort to establish a culture of trade order.”