The Fair Trade Commission confirmed on the 15th that it has begun on-site investigations into Asung Daiso, which operates the living goods specialty store Daiso, to investigate potential violations of the Franchise Business Act. This measure aims to check for unfair transaction possibilities in the overall contract structure and operational methods between the headquarters and franchise stores.
According to the distribution industry, on this day, researchers from the Fair Trade Commission's franchise transaction investigation team visited the Daiso headquarters located in Dogok-dong, Gangnam District, Seoul, to conduct a mandatory investigation.
As of the end of last year, Daiso operates 483 out of 1,576 stores nationwide in the form of franchises. The proportion of franchises among all stores is around 30.6%.
It is reported that the Fair Trade Commission will examine whether there are unfair contracts and whether expenses were unilaterally shifted to suppliers or franchise owners through this investigation.
Since 2019, the Fair Trade Commission has been operating the franchise transaction investigation team and has been strengthening checks on unfair practices in the franchise industry. Recently, as franchise models spread across various sectors such as delivery, convenience stores, and living goods, the scope of mandatory investigations has also been expanding.
A Fair Trade Commission official noted, “We cannot confirm whether individual corporations have initiated investigations.” A Daiso official stated, “The Fair Trade Commission has launched an investigation to check if there are any issues,” adding, “We will cooperate sincerely.”