The Fair Trade Commission announced on the 2nd that it imposed corrective orders on Cage Mobility Co., Ltd. for violating the obligation to issue written confirmations while outsourcing the manufacturing of automobile parts to supply vendors.
Cage Mobility Co., Ltd. failed to issue written confirmations containing essential details such as subcontractor payment amounts, payment methods, and payment dates as stipulated in Article 3 of the Act on Fair Transactions in Subcontracting, while notifying supply vendors of the parts requirement plan, including the names of automobile parts, dates, and daily parts requirements, via Webvan from February 2021 to April 2022.
A Fair Trade Commission official noted, "Requiring the issuance of written confirmations containing legal requirements before starting work clarifies the rights and obligations between the main contractor and the supply vendor, which helps to prevent potential disputes in the future and ensures the main contractor's voluntary compliance with the law while facilitating dispute resolution."
The Fair Trade Commission imposed a recurrence prevention order on Cage Mobility Co., Ltd. for the violation of the obligation to issue written confirmations.
The Fair Trade Commission emphasized that this measure is significant for clarifying contract details, protecting the rights of disadvantaged supply vendors, and minimizing disputes between the parties by correcting unfair subcontracting practices.