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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Young-taek] The Fair Trade Commission (FTC) is expected to issue a corrective order to Coupang regarding algorithm manipulation for its private brand (PB) products as early as next week.
Coupang has announced plans to strongly respond with legal measures, marking this as the first administrative sanction regarding 'product display.'
According to the retail industry on the 4th, the FTC plans to notify Coupang of the corrective order next week. Typically, FTC corrective orders can be viewed on their website.
Last month, on the 13th, the FTC imposed a provisional fine of 140 billion KRW on Coupang for violating the Fair Trade Act. The FTC stated, "We are currently drafting a decision on Coupang and CPLB's customer inducement activities by hierarchy," and added, "We plan to send the decision containing the fines and corrective orders to Coupang within this month."
The industry expects the FTC to order Coupang to stop the fixed display of its PB products. Recently, the FTC announced that Coupang manipulated algorithms through methods such as product promotion, Strategic Good Product (SGP), and Cold Start Framework.
Even if the FTC issues a corrective order to Coupang, there is a possibility that Coupang may apply for a suspension of execution with the court. If the court accepts Coupang's application, the effect of the FTC's corrective order will be suspended until the main lawsuit is concluded.
Typically, a cancellation order lawsuit against the FTC takes about 2-3 years, and if an appeal to the Supreme Court is involved, this period can be extended further.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
