What kind of response is needed during a Fair Trade Commission investigation?

Hello. I am an attorney specializing in fair trade at Daeryun Law LLC.

A Fair Trade Commission investigation is conducted when a competition-restricting act is suspected, and unfair collaborative acts such as price fixing are the main subject of investigation.

The investigation procedure generally proceeds in the order of (1) receipt of the case, (2) request for materials and on-site investigation, (3) deliberation of the case, and (4) resolution and decision on sanctions.

Once a formal investigation begins, the Fair Trade Commission requests, through an official document, that the relevant company submit materials such as meeting minutes, contracts, emails, and price lists, and if necessary, investigators visit the site to verify the facts.

Based on the results of the investigation, it then determines whether there was a violation and, through a plenary session, decides on a penalty surcharge, a corrective order, and whether to file an accusation with the prosecution.

If there are circumstances indicating that prices were coordinated with a competitor, this is regarded as an 'unfair collaborative act' under the Monopoly Regulation and Fair Trade Act and may even result in criminal punishment.

In the early stage of a Fair Trade Commission investigation, setting the direction of the response is very important.

Organizing the records of communication with the competitor, analyzing related materials, and a strategy to prevent unfavorable interpretation are necessary, and the materials submitted to the Fair Trade Commission must be prepared carefully.

Receiving the assistance of a legal expert from the stage when the investigation begins is also helpful for a future reduction of the penalty surcharge or the prevention of an accusation.

Matters such as statements by those under investigation, interpretation of internal materials, and objections should also be handled together with an expert in order to reduce disadvantages.

I recommend that you receive a prior consultation in preparation for a Fair Trade Commission investigation.