Fair Trade Commission Sanctions NC Platform for 'Unregistered Multi-Level Marketing' Operations

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NC Platform, which conducted unregistered multi-level marketing through an online shopping mall, will be sanctioned by the Fair Trade Commission.

On the 3rd, the Fair Trade Commission announced that it would impose corrective orders on NC Platform for violating the Door-to-Door Sales Act.

According to the Fair Trade Commission, NC Platform sold cosmetics and other products on a cyber mall from July 2021 to March 2022. NC Platform has been registered as a sponsor door-to-door sales business in Daegu since 2021 and sells cosmetics and other products. As of 2022, it ranks 10th in sales among 5,594 sponsor door-to-door sales businesses.

Although it used an organization connected by upper and lower sales representatives and paid sponsorship commissions linked to performance, engaging in multi-level marketing, it did not register as a multi-level marketing business operator.

The Fair Trade Commission determined that NC Platform's sales method constitutes unregistered multi-level marketing and decided to impose sanctions.

The Fair Trade Commission stated, "We will monitor illegal acts such as unregistered multi-level marketing and strictly sanction them when detected."

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