The Fair Trade Commission launched an on-site investigation to confirm allegations of Coupang's violations of the Large-Scale Retail Business Act, but it is reported that they withdrew due to Coupang's refusal. This is the first time the FTC has withdrawn from conducting an on-site investigation due to resistance from a company under investigation.
According to related industry sources on the 25th, the FTC recently launched an on-site investigation to confirm allegations that Coupang shifted the cost of 'price-customized coupons' to suppliers. Price-customized coupons are automatically issued when specific products sold on Coupang are more expensive than competing online malls such as Naver, thereby lowering consumers' actual purchase prices to the lowest price level. The FTC is investigating whether Coupang unfairly shifted the discount costs incurred in this process to suppliers.
However, Coupang refused to cooperate with the investigation, claiming it was not notified in advance about the investigation. The basis Coupang presented is a clause of the Administrative Investigation Act that stipulates that administrative agencies must notify the subject of investigation in writing by seven days before the start of an on-site investigation. While violations of the Fair Trade Act and Subcontracting Act are exempt from the application of the Administrative Investigation Act, investigations under the Large-Scale Retail Business Act are subject to the law.
It is reported that Coupang filed a lawsuit in court on the 21st to prevent the execution of the on-site investigation decision and disposition, arguing that the investigation itself conducted without prior notice is unlawful.
The FTC maintains the position that this falls under an exception to the prior notification requirement. Article 17 of the Administrative Investigation Act stipulates that if it is determined that prior notification would make it impossible to achieve the investigation's purpose due to destruction of evidence, etc., the investigator may present an on-site investigation notice or verbally inform the investigation purpose upon the start of the investigation. As securing data could become difficult if the investigation becomes known in advance, the FTC has thus far conducted investigations related to the Large-Scale Retail Business Act without prior notification.
As the two sides held conflicting positions, the FTC ultimately withdrew from the scene.
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Hmm... will this affect the internet shopping mall industry?
▶ Original source: https://news.nate.com/view/20260825n23631?mid=n0400
