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[Alpha Biz=(Chicago) Reporter Paul Lee] Maeil Dairy, a dairy product manufacturer, was sanctioned by the government for violating the Fair Trade Act.
It is accused of asking Oasis Market, an early morning delivery company, to raise the consumer sales price of its products.
The Fair Trade Commission announced on the 7th that it has decided to issue a correction order (prohibition of similar acts in the future) for Maeil Dairy's resale price maintenance (violation of the Fair Trade Act).
Resale price maintenance is the act of forcing the manufacturer to keep the selling price above a certain level.
According to the FTC survey, Maeil Dairy designated the sales price of 21 products to Oasis Market in July 2020 after Oasis Market sold milk and other Maeil dairy products at a low price.
It was to resolve complaints from competing distributors and prevent excessive price competition.
Oasis Market has raised most of its product prices above the designated price. They accepted the request because they believed that rejecting the demand of Maeil Dairy Products could result in disadvantages such as refusal of supply.
The FTC pointed out that Maeil Dairy's actions caused the same effect as collusion among major operators in the early morning delivery market. It has had a series of price hikes.
The Fair Trade Commission pointed out that Maeil Dairy's actions undermined the free and fair competition order and undermined consumer welfare.
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