Expertise

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

Introduction

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