K-pop companies HYBE, YG, SM and JYP Entertainment have reportedly been fined by the Fair Trade Commission (FTC) in South Korea for breaches its regulations after their stringent retail policies were investigated.
According to TenAsia, he FTC announced on August 11 that it had imposed corrective orders and fines amounting KRW10.5million (approximately £5716.71) on the official retail branches of HYBE, YG, SM and JYP Entertainment: Weverse Company, YG Plus, SM Brand Marketing and JYP Three Sixty, respectively.
The companies being subject to FTC’s sanctions all operate the official online retail centres for the K-pop industry’s four biggest players. According to the commission, all four companies were found to have “arbitrarily shortened the period where customers are able to get refunds on idol-related merchandise”, including albums, which it deemed a breach of its regulations.
Examples of some violations include SM’s policy of having any product refunded for simple change of mind arrive at its logistics centre within seven business days of its original delivery date, despite the law stating that customers have the right to seven days from the time it was received to decide on a return.
Additionally, Weverse, SM and JYP all have a policy where they would not offer compensation for lost items after 30 days from when it was shipped, despite the law permitting monetary claims within three months of purchase, among others.
In response to the results of FTC’s investigation, all four companies were quick to conduct voluntary policy correction where appropriate, which allowed their fines to be reduced. Weverse Company received the heaviest fine at KRW3million, while SM, YG, and JYP were each fined KRW2.5million
In other K-pop news, Korean band Day6 have recently announced an upcoming world tour dubbed ‘Forever Young’, slated to kick off in September this year with a three-night residency at Incheon’s Inspire Arena. The first portion of the tour, also the Asian leg, will include cities in Japan, Southeast and East Asia, while shows in other regions have yet to be announced.
