Ban on 'Gore-Tex Sales' in Large Mart... Supreme Court Rules "Legitimate Business Activity"

Law "As part of maintaining premium brand value... Necessity and rationality fully recognized"

[Asia Economy Reporter Heo Kyung-jun] The Supreme Court has ruled that Gore's policy of banning the sale of finished products made with Gore-Tex material in large supermarkets is a legitimate business activity.

The Supreme Court's First Division (Presiding Justice Noh Tae-ak) announced on the 30th that it upheld the lower court's ruling in favor of the plaintiff in the lawsuit filed by Gore and others against the Fair Trade Commission seeking cancellation of corrective orders.

From March 2009 to December 2012, Gore required its domestic clients to comply with a policy prohibiting the sale of finished products made with Gore-Tex material in large supermarkets. Clients who violated the policy were subject to sanctions such as demands to stop sales and recall products, as well as suspension of Gore-Tex fabric supply.

In September 2017, the Fair Trade Commission imposed a fine of 3.673 billion KRW on Gore, finding that this policy constituted a "transaction condition that unfairly restricts the business activities of the counterparty," potentially hindering fair trade. Gore then filed a lawsuit seeking cancellation of the fine.

The Seoul High Court, the court of first instance, ruled that "the purpose of introducing the policy was to maintain the value of a premium brand, and its necessity and rationality are also recognized," adding that "a premium brand strategy can promote competition and increase consumer welfare."

The Supreme Court also agreed with the lower court's judgment.

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