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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Fair Trade Commission has decided to sanction Coupang and its subsidiaries for unfair subcontracting practices.

It is suspected of issuing a document stating a "false subcontract unit price" unlike the actual transaction while entrusting the supplier with the manufacture of its own brand (PB) products.

The FTC said on the 22nd that it will impose a fine of 178 million won on Coupang and CPLB for violating the "Act on Fair Subcontracting Transactions," along with a correction order.

CPLB is a subsidiary of Coupang's PB business.

According to the Fair Trade Commission's investigation, Coupang and CPLB issued a letter of order containing different subcontracting prices, entrusting a total of 218 suppliers with the manufacture of PB products from March 2019 to January 2022.

In response, Coupang explained, "The false unit price was temporarily listed in the purchase order so that the unit price of PB products by suppliers will not be disclosed to other departments."

Coupang also stressed that "the supply and demand operators knew the actual purchase price through prior consultation and paid the price by writing the actual purchase price in the estimate and tax invoice."

However, the FTC refused to accept Coupang's claim, saying, "If the contents of the order sheet with the false unit price and the estimate sheet with the actual unit price are different, the transaction details will be unclear and the status of suppliers will be weakened."

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