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

Hello. This is the Daeryun Law Firm fair trade specialist attorney.

A Fair Trade Commission investigation is conducted when there is suspicion of competition-restricting conduct, with unfair collusive practices such as price-fixing being the main targets of investigation.

The investigation procedure generally proceeds in the order of (1) case acceptance (2) document request and on-site investigation (3) case deliberation (4) resolution and sanction decision.

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

Based on the investigation results, illegality is then assessed, and a plenary meeting decides on penalty surcharges, corrective orders, and whether to refer the case for criminal prosecution.

If there is evidence of price coordination with competitors, this is regarded as an "unfair collusive act" under the Fair Trade Act and may even result in criminal punishment.

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

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

Receiving the assistance of a legal expert from the start of the investigation is also helpful in obtaining a reduction of penalty surcharges or preventing criminal referral later on.

Statements by the subject of the investigation, interpretation of internal documents, and objections should also be handled together with an expert to minimize disadvantages.

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