South Korea's antitrust regulator said Sunday that it has fined CJ Olive Networks Co. 1 billion won ($837,000) for violating the fair transactions law.
The operator of Olive Young, a leading health and beauty store chain, is accused of returning goods worth about 4.1 billion won to its suppliers without justifiable reasons between January 2014 and July 2017, according to the Fair Trade Commission.
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(CJ Olive Networks) |
The law stipulates that a large franchise and retail business operator should not return goods without a good reason.
CJ Olive Networks also failed to bear all the expenses of the 559 employees of 31 suppliers who worked in Olive Young outlets between August 2016 and December 2017, the commission said.
Under the law, the dispatch of a supplier's employees to a large franchise and retail business operator is allowed if the franchise and retail business operator pays the labor costs of such employees.
CJ Olive Networks vowed to ensure fair trade, saying that it has taken corrective measures following the commission's probe. (Yonhap)
