Lotte Shopping, which illegally used employees who were dispatched by its suppliers, will eventually be transferred to the prosecution. Savezone Inc. was fined for handing over the cost of the promotion to its suppliers.
The Fair Trade Commission (FTC) said on Sept. 13 that it has decided to issue a correction order to Lotte Shopping, which illegally used employees who were dispatched by its suppliers without a prior written agreement on improving the environment of its large retail store, and impose a fine of 80 million won.
The FTC also decided to file a lawsuit against Lotte Shopping with the prosecution for repeated violations of the same law.
According to the FTC, Lotte Shopping used 906 employees from 118 suppliers without a prior written contract to improve the environment of 20 Lotte Mart stores from August 26, 2015 to August 16, 2016.
Under the Large-scale Distribution Act 12, a large distributor must make a written commitment in advance in order to have the supplier's employees sent to work at their business sites. But, Lotte Shopping violated the act. The cost of labor for suppliers who were illegally dispatched by Lotte Shopping is 76.9 million won..
This is not the first time Lotte Shopping has violated the law. On July 13, 2016, the FTC issued a correction order to Lotte Shopping for its illegal use of suppliers' employees without a written agreement to improve the environment of Lotte Mart stores between October to November 2016, along with a fine of 319 million won.
Lotte Shopping filed a lawsuit, but both the High Court and the Supreme Court judged that the FTC's decision was not illegal.