Coupang said the Fair Trade Commission’s on-site probe stalled in Korea after the company refused inspections over notice procedures. The FTC had planned inspections last week through this week over allegations that Coupang shifted discount costs to suppliers. Coupang said it had not received the seven-day advance notice it believes the law requires and plans to seek a court ruling. The court is set to hear arguments next Wednesday before deciding whether to suspend the inspection.
Coupang's headquarters in Seoul's Gwangjin District, Aug. 5 / Yonhap
The fair trade watchdog's probe into the Korean arm of U.S.-listed Coupang Inc. appears to have hit a setback after the e-commerce giant refused investigators' recent attempts to conduct on-site inspections, citing procedural issues, industry sources said Thursday.
According to sources, the Fair Trade Commission (FTC) had planned to conduct on-site inspections of Coupang's Korean unit from last week through this week over allegations that the company violated the Act on Fair Transactions in Large Retail Business.
The allegations center on suspicions that Coupang shifted the costs of discounts onto its suppliers.
