Fair Trade Commission Cracks Down on 'Kkamkkami' Advertising and Promotions... Issues Corrective Order to Ewha Soo

"Half of Advertising and Promotion Costs Burdened on Franchisees Without Notification"

[Sejong=Asia Economy Reporter Joo Sang-don] Ewha-soo was sanctioned by the Fair Trade Commission for imposing advertising and promotional event costs on franchisees without notifying them of the details.

On the 3rd, the Fair Trade Commission announced that it decided to issue a corrective order against Ewha-soo for such conduct.

Ewha-soo is the franchisor operating the 'Ewha-soo Jeontong Yukgaejang' dining franchise, with 173 franchisees as of 2019.

According to the Fair Trade Commission, Ewha-soo conducted a total of five advertising and promotional campaigns through media such as TV and radio from October to December 2016. Of the total cost of 41,507,000 KRW incurred, half, 20,753,000 KRW, was charged to the franchisees, but the execution details were not notified to them. The execution details must be notified to the franchisees within three months after the end of the relevant business year.

A Fair Trade Commission official said, "We expect this measure to serve as an opportunity to improve the opaque advertising and promotional practices of franchisors and to establish transparent advertising cost execution practices between franchisors and franchisees." He added, "The Fair Trade Commission will continue strict monitoring and impose severe sanctions if unfair cost shifting or failure to notify execution details are detected."

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