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[Alpha Biz=(Chicago) Reporter Kim Jisun] The FTC said on the 27th that it has imposed a total of 64,800 million won in fines on four companies, Lotte Shopping, Shinsegae Simon, Hyundai Department Store and Hanmu Shopping, on charges of violating the Large Distribution Business Act.
This measure is the first case of sanctions since the Large Distribution Business Act was revised in 2019 and rental businesses such as outlets became subject to the law.
According to the Fair Trade Commission, the four outlets held large-scale discount events around the same time between late May and early June 2019 and 2020. The problem is that there was no prior written agreement on the contents of the event, including the duration of the event and the cost of the discount event. The Large Distribution Business Act requires prior written consultations to prevent the unfair transfer of sales promotion costs.
Lotte Shopping, which runs Lotte Outlet, was found to have paid 100 million won for 216 tenants, while Shinsegae Simon, which runs premium outlets, paid 25.38 million won for 177 tenants, respectively. Hyundai Department Store, which runs Hyundai Outlet, handed over 100 million won and 100 million won to 68 tenants and its affiliate Hanmu Shopping to 58 tenants, respectively, the survey showed. It was all a sales promotion without a written agreement.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
