Reasons for Proposal
December 2016, the “Fair Agency Transactions Act” was enforced to establish a fair-trading order for agency transactions and to ensure balanced growth of suppliers and agencies on equal grounds.
Since then, however, 22% of agency owners have experienced unfair transactions and demands for agency transaction system reform have been increasing. To get rid of unfair trading, they are demanding the granting of the right to organize agency association and to negotiate, the assigning of disclosure document registration duty, etc.
Hence, by providing for additional agency transaction systems to be introduced in the law, such as granting agency association organization rights and negotiation rights, assigning disclosure document registration duty to the agency head office, etc., a fair-trading order for agency transaction shall be established.
Details
A. The disclosure document to be provided to the agency transaction applicant shall be registered at the Fair Trade Commission by the supplier designated by Presidential Decree, and the duty to provide the agency transaction applicant with it shall be assigned (Articles 4-2 to 4-5 newly inserted).
B. The right of agency association organization and the right of business terms negotiation shall be granted, and the supplier shall be prohibited from penalizing an agency, etc. for organizing an agency association, for joining it, for activities in the organization, etc. (Article 5-2 newly inserted).
C. To establish a fair-trading order for agency transactions, the Fair Trade Commission shall educate, train and promote the relevant matters to suppliers, agencies and agency transaction applicants, etc. and can entrust a designated agency with it (Article 22-2 newly inserted).
Major Provisions
Disclosure document registration (Article 4-2), refusal to register disclosure document (Article 4-3), cancelling disclosure document registration (Article 4-4), duty to provide disclosure document (Article 4-5), agency association’s negotiation to change business terms (Article 5-2), designation, cancellation, and suspension of agency-related education agency (Article 22-2), corrective measures (Article 23), fines (Article 25)
