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The 10 million won limit on reward money for reporting illegal activities related to direct sales, such as unregistered multi-level marketing, will be lifted.
The Fair Trade Commission (FTC) announced that it has drafted an amendment to the Enforcement Decree of the Act on Door-to-Door Sales, etc., containing these measures, and will hold a legislative notice until September 14.
The core of this amendment is to abolish the current limit of 10 million won and allow up to 10 percent of the surcharge to be paid as a reward.
The FTC revised the Regulation on the Payment of Rewards to Reporters of Violations of the Fair Trade Act and Other Laws (Reward Regulation) in June to remove the reward cap and pay up to 10 percent of the surcharge as a reward.
Once the enforcement decree is amended, larger rewards can be paid for reporting illegal activities related to direct sales, such as unregistered multi-level marketing and speculative sales agent expansion practices.
The amendment also includes provisions allowing rewards to be paid to executives and employees who participated in violations of the Door-to-Door Sales Act.
Under the current enforcement decree, businesses that violated the law as well as executives and employees who participated alongside them are excluded from receiving rewards.
The FTC expects that whistleblowing from internal participants will enable the early detection of concealed violations.
However, rewards will be partially reduced for executives and employees who led or participated in the law violations for a long period.
Opinions regarding the legislative notice can be submitted on the FTC website (www.ftc.go.kr).
(Photo provided by the Fair Trade Commission, Yonhap News)
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