(1) Reasons for Proposal

This Amendment aims to newly insert authority for the Fair Trade Commission to conduct a fact-finding investigation and disclose its results if required to operate the Consumer Policy Committee and promote the rights and interests of consumers, the basis to establish the Consumer Rights and Interests Promotion Foundation and provide budget support, and the supervision authority of the Fair Trade Commission for the Consumer Rights and Interests Promotion Foundation, add eligible plaintiff groups allowed to file a consumer group lawsuit, allow for a class-action lawsuit if required for the public interest as material infringement on consumers’ rights and interests is expected, abolish the lawsuit approval procedure to file a consumer group lawsuit, and supplement improvements observed in the enforcement of the Act.

(2) Major Provisions

A. Newly insert authority to conduct a fact-finding investigation (Article 26 paragraphs 3 through 6 newly inserted)

1) Allow the Fair Trade Commission to conduct a fact-finding investigation and disclose its results if required to operate the Consumer Policy Committee and promote the rights and interests of consumers.

2) Allow the Fair Trade Commission to request business entities to submit documentation to conduct a fact-finding investigation and disclose its results, and require business entities to follow the request unless there is a justifiable reason to not do so.

B. Establish and operate the Consumer Rights and Interests Promotion Foundation (Articles 27-2 through 27-7)

1) Establish the Consumer Rights and Interests Promotion Foundation to enhance consumers’ rights and interests and support and promote consumer groups, and provide government funding if required to establish the foundation and ensure stable project operations. 

2) Allow the foundation to conduct consumer empowerment projects such as consumer education and information dissemination, remedy projects such as consumer dispute resolution, and projects commissioned from business entities depending on agreement and resolution from the Fair Trade Commission.

3) Require the Fair Trade Commission to approve the foundation’s project plan, receive reports on project performance and financial statements, and have authority to supervise the foundation’s work, accounting, and assets.

C. Rationalize a consumer group lawsuit system (Articles 70, 73, 74, and 76 amended)

1) Add a consumer group council to groups allowed to file a class-action lawsuit, newly insert the rights to seek a preventive injunction, and abolish the lawsuit approval procedure in an effort to restore the original function of a class-action lawsuit, which is to prevent harm to consumers.