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The North Face hit with record $4.6 million fine for blocking discounts

By  |  April 29, 2012

The Korean Fair Trade Commission has fined The North Face 5.2 billion won (approximate $4.6 million) for its unfair business practices. The FTC’s investigation determined that The North Face had limited retailers’ ability to offer its jackets at discounts. The FTC found that Goldwin Korea, The North Face’s exclusive Korean importer, imposed the same discount rate at its 151 retail locations. Moreover, retailers had to keep prices 10 to 15 percent higher than those of competing labels to maintain its premium reputation in Korea. Those retailers that did not comply saw supply suspended, contracts nullified, or even fines.

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    The North Face’s fine is the highest handed down by the FTC for the practice of limiting retailers’ ability to discount prices.

    Full content: Korea Herald

     

    Related content: (Minimum) Resale Price Maintenance Under the New Guidelines: A Critique and A Suggestion (Yves Botteman & Kees Jan Kuilwijk, Steptoe & Johnson)

     

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