The Korea Fair Trade Commission (FTC) has slapped the online stores of the four biggest K-Pop agencies with a fine of 10.5 million won for violating consumer rights.
FTC Finds Violations in Online Stores
The FTC’s investigation revealed that the online stores of HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment failed to provide adequate information to consumers regarding product details, delivery, and returns. The agencies were also found to have engaged in misleading advertising practices.
Corrective Orders and Fines Imposed
As a result of these violations, the FTC has issued corrective orders requiring the agencies to improve their online store practices. The agencies have also been fined 10.5 million won for their transgressions.
Industry Implications
This action by the FTC highlights the importance of consumer protection in the K-Pop industry. It serves as a reminder that even the biggest agencies are not exempt from following consumer rights regulations. The fines and corrective orders are likely to encourage other K-Pop agencies to review their online store practices and ensure compliance with consumer protection laws.