Mobile Carrier Distribution Association "Mobile Carriers Reduced to Tools for Illegal Activities... Will Take Legal Action"

Decision to File Complaint with Fair Trade Commission on Illegal Acts by Telecom Companies Including Individual Contracts
"High Fees · Forced Additional Services, Distribution Network Burdened if Retention Period Violated"

On the 23rd, the Mobile Telecommunications Distribution Association held a press conference at the LG Uplus headquarters in Yongsan-gu, Seoul, announcing that they would file a complaint with the Fair Trade Commission against mobile carriers for ▲violations of the prohibition on individual contracts ▲excessive incentive discrimination ▲coercion to subscribe to high-priced plans.

[Asia Economy Reporter Han Jinju] The Mobile Telecommunications Distribution Association, composed of employees from mobile carrier agencies and sales points, has condemned the unfair practices of mobile carriers and announced plans to file a complaint with the Fair Trade Commission.

On the 23rd, the Mobile Telecommunications Distribution Association held a press conference at the LG Uplus headquarters in Yongsan-gu, Seoul, declaring that they will take legal action against mobile carriers for violations including ▲prohibition of individual contracts ▲excessive incentive discrimination ▲coercion to subscribe to high-priced plans.

The association stated, "We have become tools for the carriers' illegal activities. Mobile carriers have directed and forced illegal acts specified as 'individual contracts,' such as coercion to subscribe to high-priced plans and additional services, and mandatory contract maintenance periods. When consumers violate the maintenance period, all responsibility is shifted to distributors, creating a structure where laws are not upheld. We will take legal measures to correct this."

The association plans to file complaints with the Fair Trade Commission regarding unfair practices by each mobile carrier and urge the Korea Communications Commission to investigate related illegal activities. The first complaint will be filed on the 29th concerning LG Uplus's notification of non-renewal of agency contracts through subsidiary agreements.

Cases of violations of the prohibition on individual contracts or excessive incentive discrimination that promote user discrimination under the Act on the Improvement of Mobile Device Distribution Structure (Device Distribution Act) will be shared in advance with the Korea Communications Commission before filing with the Fair Trade Commission. If negotiations related to delayed commission payments and delayed card fee payments, which are currently under dispute mediation by the Fair Trade Commission, do not conclude smoothly, the association plans to proceed with filing complaints.

Separately, the association intends to receive reports of illegal acts such as coercion to subscribe to high-priced plans, failure to comply with plan maintenance periods, or deductions and recoveries due to early termination, and respond jointly with civic groups.

The association said, "Operators abusing the Device Distribution Act, which was implemented to eliminate user discrimination, are fostering illegal distribution networks operating outside regulatory oversight and are running discriminatory incentives ranging from 200,000 to 500,000 KRW through spot policies. We will now correct the carriers' greed, which changes sales policies up to 22 times a day, even if it requires legal action. We call for strong administrative measures from the government and regulatory agencies."

This content was produced with the assistance of AI translation services.