[Alpha Biz=(Chicago) Reporter Kim Jisun] E-Mart 24 will be sanctioned by the government.

The Fair Trade Commission said on the 21st that it will impose 145 million won in corrective orders, warnings and fines on E-Mart 24, the flagship franchise headquarters of the convenience store industry, for violating unfair trade practices.

According to the Fair Trade Commission, some E-Mart 24 franchises demanded E-Mart 24 to shorten their business hours after losses occurred during late-night business hours due to the COVID-19 crisis between September and November 2020.

However, the E-Mart 24 franchise headquarters did not allow the franchise request even though it confirmed through its own investigation that late-night operating losses occurred at the branch for the previous three months.

Under the Franchise Business Act, franchisees can ask their headquarters to shorten their business hours if losses occur during late-night business hours during the previous three months.

If the franchise headquarters does not accept this, it is an unfair restriction on business hours.

In particular, E-Mart 24 belatedly allowed the two stores to shorten their business hours when the FTC conducted an on-site investigation in June 2021.

The Fair Trade Commission decided to impose sanctions on E-Mart 24, believing that such behavior constitutes a violation of the Franchise Business Act.

 

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