The Korea Communications Commission is planning to release new guidelines for multi-level marketing for mobile phones within this week. The guidelines signify that multi-level marketing by domestic mobile carriers will be legalized in substance.
Since the implementation of the Terminal Distribution Structure Improvement Act, multi-level marketers in the industry have been forced to purchase terminals and subscribe to the mobile carriers’ calling plans before being paid for the subscribers that they attract. During the course, cases have been exposed where specific phones and more expensive calling plans are forced to be chosen. With regard to this issue, the Korea Communications Commission imposed a penalty of 2.3 billion won (US$2.0 million) on LG U+ in September. The new guidelines are to prevent such illegal practices.
In the meantime, the Fair Trade Commission started its own
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No. Of Korean MLM Firms Increases to 142
by Ramya Chandrasekaran • • 0 Comments
The number of multi-level marketing (MLM) companies has grown to 142 across the nation, with ten firms newly registered in the third quarter of the year.
The Fair Trade Commission said the ten new MLM companies signed compensation agreements with the Mutual Aid Cooperative and Consumer Organization (MAC&CO) and the Korea Special Sales Financial Cooperative Association (KOSSA).
Consumers and marketers will be able to receive compensation if they suffer financial damages when doing business with such companies.
The trade watchdog warned consumers of dealing with three firms—Monavie Korea, Joonggun Korea and Montessori International—whose agreements with the MAC&CO and KOSSA ended in the third quarter.
In August this year, the Fair Trade Commission (FTC) reported there were 132 MLM companies in the country as of June 30, up seven from three months earlier. At the time