Door-to-Door Sales (Multi-Level Marketing)

Overview
Professionals

Introduction

With the KFTC’s shift to consumer protections as opposed to regulating cartels and business groups, the Act on Door-to-Door Sales has come into greater focus in recent years. Administrative fines for violations of the Door-to-Door Sales Act have increased dramatically in recent years to billions of Korean Won a year, along with substantially increased referrals for criminal indictments.

Shin & Kim’s antitrust & competition team has vast experience and a significant track record for successfully representing clients in KFTC investigations for violations of the Door-to-Door Sales Act and in advising corporate clients on door-to-door sales. We have achieved successful outcomes representing many multi-level sales businesses in the investigation stage as well as clients facing administrative and criminal proceedings.

In particular, with strict regulations on multi-level sales currently in place and the Supreme Court’s rigid notion of multi-level sales, a preliminary legal assessment of potential violations of the Door-to-Door Sales Act is essential in developing a viable business structure and sales strategy. To this end, Shin & Kim’s antitrust and competition team provides practical guidance and solutions to avoid potential violations of the Door-to-Door Sales Act.

Key Services

Shin & Kim provides the following services to the client for door-to-door (multi-level) sales cases:

Assessing businesses and sales practices for potential violations of the Door-to-Door Sales Act
Advising clients with requests and orders issued by the KFTC for information and on-site investigations during investigations
Representing clients in hearings before the KFTC and submitting opinions on the examiner’s report
Defending clients in administrative lawsuits, civil and criminal proceedings resulting from violations of the Door-to-Door Sales Act
Assisting in developing business structures and sales strategies to minimize risk of violating the Door-to-Door Sales Act

Experiences

The largest multi-level marketing company in Korea, in responding to the KFTC investigation for violations of the Door-to-Door Sales Act
Major multi-level marketing company in the KFTC investigation, appeal, prosecutorial investigation and criminal litigation for violations of the Door-to-Door Sales Act;
The largest household appliance rental company in Korea, in the KFTC investigation for violations of the Door-to-Door Sales Act
A major conglomerate, for possible violations by a potential acquisition target of the Door-to-Door Sales Act and subsequent advice to develop its business structure post-acquisition
A financing company of a foreign automobile manufacturer, regarding a possible violation of the Door-to-Door Sales Act
A major social commerce company, on the applicability of the Door-to-Door Sales Act and structure advice on its sales network.

Awards and Rankings

Ranked Band 1 Law Firm for Competition/Antitrust
Chambers Asia 2016-2023
Ranked Elite Law Firm
GCR 100 2017-2020
Ranked Band 1 Law Firm for Antitrust and Competition
Asia Pacific Legal500 2017-2019
Named "Regional Firm of the Year – Asia-Pacific, Middle East & Africa"
GCR100 2016