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Published: October 30, 2024, 10:00 AM
Reporter: Park Jae-hyun
Summary in Three Lines:
- The Korea Fair Trade Commission (KFTC) has rejected Liman Korea’s request to initiate a consent decision process regarding its alleged violation of the Door-to-Door Sales Act.
- The company is under investigation for allegedly operating a multi-level sales system without proper registration.
- The KFTC will resume deliberation and determine whether a legal violation occurred and what penalties, if any, will be imposed.
(Sejong = Yonhap News) Reporter Park Jae-hyun –
The Korea Fair Trade Commission (KFTC) announced on the 30th that it has decided to reject Liman Korea’s application to initiate a consent decision process regarding its alleged violation of the Door-to-Door Sales Act.
The consent decision system allows a company under investigation to propose reasonable corrective actions—such as restoring the original state or compensating victims—so that the case can be concluded swiftly without determining the legality of the conduct.
Once an application is submitted, the KFTC evaluates whether to proceed based on the seriousness of the violation and its alignment with public interest and consumer protection.
Liman Korea is under investigation for allegedly conducting multi-level sales operations without registering as a multi-level marketing (MLM) business. The company reportedly used a sales structure consisting of regional branch managers, agency heads, and sales representatives in a manner similar to MLM practices.
In April, Liman Korea applied for the consent decision procedure in relation to this case.
However, the KFTC concluded that the seriousness of the alleged conduct and public interest considerations did not meet the requirements for initiating the consent decision process. Therefore, the request was rejected.
The KFTC stated:
“We will resume the deliberation process to determine whether a violation of the law occurred and, if so, what level of sanctions will be imposed.”