Luxury Goods Purchasing Agency Claims and 700 Million Won Scam Shopping Mall... Fair Trade Commission Sanctions

Corrective Actions and Fines Imposed
Representative Prosecutor Referral

Sacrastrada, which carried out a fraudulent scheme involving hundreds of millions of won by falsely advertising the sale of luxury bags and clothing such as Louis Vuitton and Prada, has been sanctioned by the Fair Trade Commission.

On the 23rd, the Fair Trade Commission announced that it ordered Sacrastrada to cease its violations of the Electronic Commerce Act and to make a public announcement, imposed a 4.5-month business suspension, and fined 7 million won.

From May to October 2022, Sacrastrada operated an overseas purchasing agency online shopping mall, advertising the sale of over 23,000 types of luxury bags and clothing.

However, Sacrastrada was a paper company without the minimum workspace or organization necessary to import or sell overseas products domestically. It rented a space of 1.65㎡ for six months, only exchanging mail, with no physical office or resident employees.

Sacrastrada lured consumers by advertising high-priced products as if they were on limited-time discounts, then embezzled the payment funds.

After the payment agency service was terminated due to complaints from victims who paid but did not receive products, Sacrastrada changed its trade name to 'Karap' and continued the fraudulent scheme by inducing bank transfers to accounts under third-party names.

It was investigated that Sacrastrada improperly obtained approximately 750 million won from a total of 601 transactions in this manner.

The Fair Trade Commission determined that these acts violated the Electronic Commerce Act, decided on sanctions including fines, and reported the representative, Mr. Park, to the prosecution.

The Fair Trade Commission stated, "We plan to strictly enforce the law by continuously monitoring illegal acts such as consumer deception and swiftly sanctioning violators."

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