The Fair Trade Commission at the Government Complex in Sejong City. [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]
South Korea’s Fair Trade Commission said Monday it issued corrective and notice orders to salad chain Salady for forcing franchisees to use certain disposable items.
The FTC said Salady required franchisees to buy eco-friendly spoons and forks. To enforce the requirement, the company included clauses in franchise contracts allowing it to halt supplies of ingredients and other goods, or to terminate contracts and seek damages.
The FTC said the cutlery requirement was not essential to maintaining a unified brand image or ensuring consistent taste and quality of core products such as salads and sandwiches. It also said the items did not have special functions or characteristics and that many substitute products are available in the market.
The FTC concluded Salady’s conduct amounted to an unfair trade practice under the Franchise Business Act, citing “binding trading partners,” and ordered the company to take corrective action and notify relevant parties.
An FTC official said the agency plans to continue monitoring and actively correcting practices that impose unnecessary burdens on franchisees by unfairly restricting their choice of suppliers for items that are easily purchased on the open market.
The FTC said Salady required franchisees to buy eco-friendly spoons and forks. To enforce the requirement, the company included clauses in franchise contracts allowing it to halt supplies of ingredients and other goods, or to terminate contracts and seek damages.
The FTC said the cutlery requirement was not essential to maintaining a unified brand image or ensuring consistent taste and quality of core products such as salads and sandwiches. It also said the items did not have special functions or characteristics and that many substitute products are available in the market.
The FTC concluded Salady’s conduct amounted to an unfair trade practice under the Franchise Business Act, citing “binding trading partners,” and ordered the company to take corrective action and notify relevant parties.
An FTC official said the agency plans to continue monitoring and actively correcting practices that impose unnecessary burdens on franchisees by unfairly restricting their choice of suppliers for items that are easily purchased on the open market.
* This article has been translated by AI.
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