Fair Trade Commission Reviews Starfield Hanam's Voluntary Correction Plan for 'Management Fee Abuse'

[Asia Economy Sejong=Reporter Dongwoo Lee] The Fair Trade Commission (FTC) will proceed with the review process for the corrective measures voluntarily proposed by Starfield Hanam, which committed an abuse of power by charging maintenance fees during interior construction periods at the same rate as during normal business periods.

On the 7th, the FTC announced that it has decided to initiate the consent decree (voluntary correction) procedure related to Starfield Hanam's abuse of superior bargaining position.

The consent decree is a system where a business under investigation and review by the FTC voluntarily proposes corrective measures such as consumer damage relief and restoration to the original state, and if the FTC recognizes the validity of these measures after gathering opinions from stakeholders, the case is promptly closed without confirming illegality.

According to the FTC, Starfield Hanam applied for the initiation of the consent decree procedure related to the ongoing investigation of abuse of superior bargaining position on April 8.

The FTC was investigating whether Starfield Hanam violated the Fair Trade Act by charging tenants maintenance fees during interior construction periods at the same rate as during normal business periods. In contrast, Starfield Wirye, Bucheon, and Goyang locations have been receiving maintenance fees at about 50% of the normal business period rate during interior construction periods.

Although Starfield Hanam had not yet received the examination report, it applied for the consent decree procedure to the FTC voluntarily, aiming to improve transaction order in the complex shopping mall market and promote coexistence and cooperation with tenants rather than contesting the legal judgment.

First, Starfield Hanam proposed revising the store lease contracts to reduce maintenance fees during interior construction periods to "approximately 50% of the maintenance fees during normal business periods," along with improving maintenance fee invoices and clarifying the components of maintenance fees.

Additionally, it proposed a measure allowing tenants to choose either a cash refund of 50% of the maintenance fees paid during the interior construction period or advertising support equivalent to 75% of that amount to compensate for damages.

An FTC official stated, "Considering the corrective measures' effect on improving transaction order and the necessity of prompt action comprehensively, we decided to initiate the consent decree procedure."

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