Please tell me about the procedures after a Fair Trade Commission report.

Hello. I am a fair trade specialist attorney at Daeryun Law Firm.

Your case appears to be a suspected price-fixing (improper joint act) matter, with a report filed with the Fair Trade Commission.

Adjusting prices through ‘agreement’ with competitors is a violation of the Monopoly Regulation and Fair Trade Act and is subject to severe sanctions.

The Fair Trade Act prohibits joint acts that restrict competition, and one of the representative types of improper joint acts is price-fixing.

If such conduct is detected, under the Fair Trade Act, it is subject to imprisonment for up to 2 years or a fine of up to 150 million won.

It is highly likely that someone reported you or the other company to the FTC on suspicion of price-fixing.

The FTC determines whether to accept the case based on internal review criteria, considering the facts of the reported case.

Some cases are closed without launching a substantive investigation, but cartel cases tend to have a high investigation initiation rate.

Once a formal investigation begins after the Fair Trade Commission report, the FTC may send you a request for documentation by official letter or conduct an on-site investigation.

Materials that can confirm the circumstances of price agreement, such as emails, text messages, meeting minutes, and price change history, are mainly requested.

The investigators analyze the relevant materials and, if necessary, take statements from related persons and request additional explanations.

After that, the case-handling department determines whether to bring it before the Plenary Session as an agenda item.

If serious cartel suspicions are confirmed, it is brought before the Plenary Session and matters such as penalty surcharges, corrective orders, and whether to file a criminal complaint with the prosecution are decided.

The decision result is then notified to your company, and if you object, you may file an objection or an administrative lawsuit.

As you described, if you agreed with a competitor to align prices and then raised them by the same amount, this can be regarded as price-fixing.

Raising prices in advance through agreement with competitors causes consumer harm and undermines the order of free competition, so the likelihood of legal violation is high.

After a Fair Trade Commission report is filed, the initial response determines the direction of the case.

Daeryun Law Firm provides the following customized advice.

▶ Analysis of communications with competitors and determination of cartel involvement

▶ Response to FTC document submissions and attendance at statements

▶ Strategy for penalty surcharge reduction

▶ Response to FTC investigation procedures and representation in objection procedures

▶ One-stop response including criminal defense in case of criminal complaint

If you have any questions, please consult a fair trade attorney immediately.