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FTC is also considering filing a complaint with the prosecution over the alleged preferential treatment of Coupang PB products

Business / Kim Jisun / 05/14/2024 03:48 AM

(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] According to industry sources, as the Fair Trade Commission (FTC) has initiated sanction procedures regarding suspicions of unfair favoritism towards Coupang's private label (PB) products, it has also been revealed that the possibility of filing a complaint with the prosecution is under consideration.

On the 13th, it was reported that the FTC sent a review report (similar to a prosecution indictment) to the prosecution, suggesting the filing of charges against the corporation regarding its unfair customer inducement practices.

Coupang has been selling PB products through its subsidiary CPLB. The FTC suspects that Coupang manipulated its search algorithm to prioritize the exposure of its own PB products over those of other companies.

In July 2021, the FTC conducted an on-site investigation into these suspicions against Coupang's headquarters.

In March 2022, civic organizations such as the Participatory Solidarity Foundation reported to the FTC that Coupang had been instructing its employees to write reviews for PB products without providing compensation since the FTC began its investigation in July 2021.

As a result, in May 2022, the FTC sent investigators to Coupang's headquarters for additional on-site investigations.

The FTC is scheduled to review the suspicions regarding Coupang's "PB product favoritism" at a plenary meeting at the end of this month and early next month.

 

 

 

AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)

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