Chanel, Hermes, and Nike Address Unfair Business Practices in S. Korea

Chanel, Hermes, and Nike have made changes to rectify what were cited as unfair business practices concerning customers. The changes were In response to a review by the Fair Trade Commission (FTC), the nation's antitrust agency,

The FTC deemed certain terms imposed by the brands as "unconditional" and in violation of local laws on contract terms, as per Korea Times.

FTC Upholds Customers' Rights

Chanel Korea announced that it would no longer deprive customers of their memberships based on presumed shopping patterns aimed at reselling. Similarly, Nike Korea stated that it would restrict orders or cancel contracts with customers only if the company believes that the customer's intent is to resell the products.

Disputing the brands' claims that resale could cause harm to other customers, the FTC firmly asserted that customers have the right to decide whether to resell the products in question. The antitrust agency maintained that the restriction of resale by the brands contradicted local laws, which safeguard customers' autonomy over their possessions.

In light of the FTC's review, Chanel, Hermes, and Nike addressed a total of 10 unfair terms concerning customers. Additionally, the FTC ordered the brands to rectify other unjust terms discovered as well.

Editing Reviews and Copyright Infringement

Chanel previously retained the right to edit online product reviews, while Nike possessed rights over reviews posted by customers. The FTC argued that such terms could potentially infringe on the copyrights held by customers. To comply with the FTC's order, both brands revised their policies to require consent from customers for the use of their online reviews.

Customers' Data Protection

Adding to Chanel Korea's recent compliance issues, the brand was fined 3.6 million won ($2,770) by the Personal Information Protection Commission for improperly collecting personal information from customers, according to Korea Joongang Daily. The violations included the collection of birth dates, residence locations, and contact numbers from customers waiting in line at an offline Chanel store.

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