Tous Les Jours Hides 'Loss' from Prospective Entrepreneurs, "Accept Fair Trade Commission's Decision"

CJ Foodville Omits Lawsuit Loss in Disclosure Document
Fair Trade Commission: "Deceptive Information Provided... Correction Order Issued"

CJ Foodville, the operator of Tous Les Jours, recently announced on the 5th that it "accepts the Fair Trade Commission's judgment" regarding the corrective order decision related to the violation of the Franchise Business Act and "will strive to comply with the preparation of the disclosure document" in the future.

The day before, the Fair Trade Commission imposed a corrective order and a notification order to franchisees on CJ Foodville, which was caught hiding the fact of unfair violation of the Franchise Business Act from prospective Tous Les Jours franchisees.

Tous Les Jours operated by CJ Foodville

According to the Fair Trade Commission's investigation, CJ Foodville received a final judgment of defeat in a civil lawsuit related to the violation of the Franchise Business Act in November 2021, but did not include this in the disclosure document from December 2021 to July 2022.

Accordingly, the Fair Trade Commission judged that "such conduct constitutes deceptive information provision that hides information that has a significant impact on the conclusion and maintenance of franchise contracts."

Previously, in July 2019, CJ Foodville immediately terminated a franchise contract and stopped supplying goods, claiming that a franchise store violated the Food Sanitation Act. However, in the related lawsuit, the Supreme Court ruled that the termination of the franchise contract was not lawfully carried out, and the suspension of goods supply was also deemed unfair.

A CJ Foodville official explained, "The store in question repeatedly failed to comply with important business policies such as using expired products, so we had no choice but to terminate the franchise contract," adding, "The delay in including the fact of the defeat in the disclosure document was due to the process of inquiring with the Seoul city government about whether it should be included." The disclosure document containing the related information was prepared in September 2022.

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