South Korea’s Fair Trade Commission (KFTC) has taken (2 December) action against the Vivaldi Park Rental Shop Association, a group of 57 ski and snowboard equipment rental businesses, for fixing minimum rental prices (RPM) during the 2022-2023 and 2023-2024 winter seasons.
The association also enforced these prices through monitoring and corrective measures against members who violated the agreed terms.
Allegations and Findings
The KFTC found that the association, operating near the Vivaldi Park Ski Resort, collectively set minimum rental fees for ski and snowboard equipment, clothing, and lessons via meetings and online chat groups. The fixed prices were communicated to all members through a KakaoTalk group chat.
The group also monitored compliance with these prices on online booking platforms like Coupang. Members found undercutting the agreed-upon prices were pressured to raise their rates to the established minimum.
Legal Implications and Penalties
The KFTC determined that these practices violated South Korea’s Monopoly Regulation and Fair Trade Act, specifically prohibitions against collective price-setting by trade associations.
While no fines were imposed—considering the association’s small budget and lack of prior violations—the KFTC issued corrective orders to prevent future violations. Members must also notify stakeholders of these orders.
Promoting Fair Competition
“The KFTC is committed to monitoring and addressing anticompetitive practices in leisure and sports markets to reduce economic burdens on consumers,” the agency stated.
Source: https://www.ftc.go.kr/www/selectReportUserView.do?key=10&rpttype=1
