On the 19th, it was learned that the Korea Fair Trade Commission launched an on-site probe into Yakson House, a skin-care franchise accused of abusing its power over franchisees.
The Korea Fair Trade Commission (FTC) on this day sent a Researcher to Yakson House in Gangnam District, Seoul, to secure materials on transactions and contracts with franchisees.
Yakson House is a skin-care franchise operating about 100 locations in Korea. Some franchisees claim Yakson House took a 30% commission on monthly sales while also collecting monthly training fees in the name of education. There are also claims that they were forced to purchase cosmetics and other items above a certain level each month.
The Franchise Business Act prohibits a franchisor from unfairly constraining a franchisee's business activities or using its superior position in transactions to disadvantage franchisees.
An official at the Korea Fair Trade Commission (FTC) said, "We cannot confirm the specific details of the case."