Prohibition of Fair Trade Commission Investigations Before Deliberation and Resolution Stages... 조정원 and Consumer Agency to Oversee Consent Decree Implementation

Fair Trade Commission to Implement Revised Rules on Case Procedures and Consent Decrees on the 20th

[Sejong=Asia Economy Reporter Joo Sang-don] From now on, during the Fair Trade Commission’s (FTC) deliberation and resolution stages, investigation officers are prohibited from conducting on-site investigations or hearing statements from the parties involved. Additionally, when the Korea Fair Trade Mediation Agency and the Korea Consumer Agency perform consent decree implementation management tasks, the FTC must provide the necessary data. This is in accordance with the smooth enforcement of the amended "Monopoly Regulation and Fair Trade Act" revised last May, and the FTC is revising related regulations to implement this.

The FTC announced that it has finalized and will enforce from the 20th the amendments to the "Rules on the Operation of the Fair Trade Commission Meetings and Case Procedures (Case Procedure Rules)" and the "Rules on the Operation and Procedures of the Consent Decree System (Consent Decree Rules)" containing these provisions.

First, regarding the Case Procedure Rules, in accordance with the amended Fair Trade Act and enforcement decree draft, the start date of investigation into unfair joint acts is clearly defined as the "date of receipt of the report" for reported cases, and as the "earliest date among on-site investigation date, data submission request date, etc." for cases investigated ex officio by the FTC.

The right of the respondent to request inspection and copying of materials has also been clarified, and the obligation to notify investigation results has been specified. The FTC is stipulated to allow parties to inspect and copy materials, except for trade secret materials, voluntary report-related materials, and other non-disclosed materials under the law. Furthermore, even if the FTC decides not to take action based on the investigation results, it is principle to notify the parties of the grounds, content, and reasons; however, exceptions to the notification obligation will be recognized if notification is realistically impossible.

During the deliberation and resolution stages, on-site investigations or hearing statements from the parties are prohibited. Also, the scope of notification of case initiation is expanded from only the investigated party to include the reporter, and the notification methods are diversified to include text messages in addition to the existing written form.

Additionally, it is stipulated that the Mediation Agency and Consumer Agency are entrusted with the consent decree implementation management tasks under the Fair Trade Act. The FTC may provide necessary data upon request from the entrusted institutions for the performance of entrusted tasks, and those responsible for implementation management are prohibited from using the provided data for purposes other than intended. The heads of the Mediation Agency and Consumer Agency must report the implementation management status to the FTC in writing every quarter and immediately notify the FTC if the applicant fails to comply with corrective measures.

An FTC official stated, "We will continue to actively identify and improve necessary matters to enhance the transparency of case handling procedures and increase the reliability of the Commission’s decisions. In addition, to ensure early stabilization of the changed investigation and deliberation procedures, we will also conduct education for investigation officers and provide explanations to companies, alongside efforts on the ground."

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