The Act on Fair Transactions in Large Retail Business enacted in 2012 lists various prohibitions for large-scale retailers. However, the provisions of the sales promotion costs stipulated in Article 11 are significantly degrading the practical suitabi...
The Act on Fair Transactions in Large Retail Business enacted in 2012 lists various prohibitions for large-scale retailers. However, the provisions of the sales promotion costs stipulated in Article 11 are significantly degrading the practical suitability of the regulations. Since the scope of the current definition of promotional events is wider than the scope of actual law enforcement, it is necessary to define them as temporary events for consumers. The current provisions on the cost sharing of sales promotion events are stipulated in favor of a supplier, and are strictly enforced in practice by reflecting this. In particular, Article 11 (5) of the Act on Fair Transactions in Large Retail Business stipulates voluntary requirements, and in 2020 the Supreme Court precedent and the Korea Fair Trade Commission interpret them as initiative, but this results in a deviation from reality. As a side effect of strict law enforcement, large-scale retailers are hesitant to conduct promotional events, and as a result, small and medium-sized suppliers are left behind in competition. In response to this, the Korea Fair Trade Commission has established a guideline and is implementing it until the end of 2023. It is necessary to revise the Law on the cost sharing of sales promotion events by reflecting the purpose of this guideline. The current written contract obligation clause was meaningful in the past when offline distributors led promotional events, but now, in the era of online shopping, a far greater number of vendors than in the past are conducting promotional events from time to time, but uniform compliance obligations are imposed. Therefore, there is a need to amend the law to reflect the reality of these transactions.