Purinmine, which tried to control the online lowest selling price of Café Bene cup coffee and penalize violators, has faced sanctions from the Fair Trade Commission (FTC).
The FTC announced on the 24th that it has issued corrective orders against Purinmine for setting and enforcing a minimum selling price for the “(CUP) Café Bene 200” (3 types) supplied to online dealers. This product consists of a box containing café latte, caramel macchiato, and café mocha.
According to the FTC’s investigation, Purinmine set the online minimum selling price of these three products at 6,500 won and required compliance from online dealers from August 2021 to November last year.
Purinmine also established a monitoring system, including self-checks and mutual reporting among dealers, to ensure compliance. Dealers were informed that violating the price control could result in disadvantages, such as increased supply costs or cessation of supply.
As a result, some online dealers actually adjusted their selling price or sought Purinmine’s approval before setting their prices.
The FTC deemed Purinmine’s actions as “resale price maintenance,” which infringes on the autonomy of businesses. It asserted that online dealers, as separate independent businesses, should be able to autonomously decide on and sell their products’ prices.
An FTC official stated, “With the growth of online distribution channels, instances of manufacturers and suppliers controlling online selling prices are increasing. Given the significant impact of price control behavior in the online market on consumer welfare, violations will be strictly sanctioned upon discovery.”