Fair Trade Commission Sanctions Paseco to Block Online Price Discounts

Paseco, which blocked price discounts at its home appliance sales agencies, will be fined 137 million won with a corrective order from the Fair Trade Commission.

The FTC said Paseco had set the lowest online sales price for kimchi refrigerators, heaters and built-in appliances between September 2018 and February 2022 and announced that it would stop supplying them and recover the products if they were sold below this.

He also explained that after checking the sales prices of the dealerships, he notified the three dealerships of the suspension of supply, collection of products, and termination of the transaction.

At the same time, the FTC said Paseco had banned online sales of built-in appliances from February 2020 to September 2022, and notified dealerships that they would stop supplying goods.

Such an act corresponds to a "constrained transaction act" in which transactions are made on the condition that the other party's business activities are unfairly restricted.