I have been reported to the Fair Trade Commission. Is there anything I can prepare in advance before the investigation?

Hello. This is an attorney specializing in fair trade at Daeryun Law LLC.

When a report is filed with the Fair Trade Commission, the Commission reviews the facts and whether there has been a violation of the law and decides whether to launch a main investigation.

Once a formal investigation begins, requests for the submission of relevant materials or on-site investigations may take place, so it is very important to prepare in advance beforehand.

In particular, a Fair Trade Commission investigation often begins as an on-site investigation without prior notice, and after a request to preserve electronic data is served, email, messenger, and PC data can be extensively secured through digital forensics.

Therefore, it is essential to carry out both the organization of materials and the management of statement-related risks from the stage before the investigation begins.

First, you should organize the structure and background of the transaction at issue.

For example, document matters such as whether the price reduction or discount conditions were necessary for market competition and what procedures the internal decision-making went through.

Second, you should also preserve records of communications with your trading counterparts.

If you can prove, through emails, text messages, and meeting minutes, that price discussions and contract terms proceeded without coercion, it is advantageous for responding to the report to the Fair Trade Commission.

Third, you should guide your internal staff on points to note when responding to the investigation and prepare so that there are no unnecessary statements.

If the response after a report to the Fair Trade Commission takes the wrong direction early on, it can lead to a penalty surcharge or a criminal accusation.

Therefore, even before an investigation, it is essential to organize the circumstances of the transaction and prepare materials proving justifiable grounds, and it is safest to obtain the advice of a specialized attorney.

At Daeryun Law LLC, attorneys with extensive experience in fair trade and corporate cases respond systematically, from the early stage of an investigation through the strategy for submitting materials and the management of statement-related risks.