(Photo= Yonhap news)

 

[Alpha Biz= Reporter Paul Lee] CJ Foodville, the headquarters of Tous Les Jours, was sanctioned for failing to inform related facts to prospective members even after being confirmed to have lost a civil suit in violation of the Franchise Business Act.

The Fair Trade Commission said on the 4th that it has imposed a correction order and a notification order to franchisees to CJ Foodville, which committed deceptive information provision.

In July 2019, CJ Foodville notified a franchise store of the immediate termination of the franchise contract and stopped supplying goods, citing violations of the Food Sanitation Act.

In response, the Supreme Court judged that it is difficult to say that the franchise contract was legally terminated in November 2021 and that the suspension of the supply of goods constitutes an unfair denial of trade.

CJ Foodville was confirmed to lose a civil suit related to the Franchise Business Act, but provided an information disclosure document to 124 prospective franchisees that did not include this fact from December 2021 to July 2022.

The loss of a civil suit related to the violation of the Franchise Business Act has a significant impact on the conclusion and maintenance of a franchise contract, and the provision of an information disclosure document that does not contain such information constitutes a deceptive provision of information under the Franchise Business Act.

 

 

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