The FTC issued a correction order and warning to E-Mart on the 30th for violating the Large Distribution Business Act

Reporter Paul Lee / approved : 2023-08-31 03:00:59
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[Apha Biz=(Chicago) Reporter Paul Lee] E-Mart was fined a correction order by the Fair Trade Commission after it was found to have belatedly received an official letter of "voluntary request" after signing an agreement to work for employees of suppliers.

The suppliers have already asked for voluntary dispatch to E-Mart as a long-standing practice, and the FTC did not impose fines because only the procedural order was reversed and there was no real damage to the suppliers.

The Fair Trade Commission said on the 30th that it has issued corrective orders and warnings to E-Mart, which violated the large-scale distribution business law.

E-Mart signed 809 dispatch agreements for 505 suppliers and their employees from March 2019 to March 2021.

In the process, E-Mart received a voluntary request form from the supplier up to 23 days later. Under related laws, it is the order to make a dispatch agreement after receiving a voluntary request.

Under the Large Distribution Business Act, human resources employed by suppliers shall not be dispatched to work at their workplaces. Exceptionally, after the supplier voluntarily requests the dispatch of employees in writing, it is allowed when a dispatch agreement is signed.

The Fair Trade Commission saw E-Mart ignore the procedures set by the Large Distribution Business Act. In response, the government decided to impose a correction order to prevent violations from being repeated in the future.

The FTC did not impose a fine, considering that the actual damage to the supplier has not been confirmed due to E-Mart's misconduct.

However, the FTC only issued a warning because E-Mart voluntarily corrected it.

 

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)

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