FTC is checking if Starbucks raised its prices fairly or notThe Fair Trade Commission said yesterday it will check if price hikes on Starbucks’ coffee, which went into effect yesterday, are reasonable.
“FTC officers are currently working to find out why the price rise was inevitable,” said Kim Dong-soo, chairman of the FTC, at a press briefing Friday. “We expect to see the result of the investigation by June or July.”
Starbucks Korea, the nation’s leading coffee chain, announced last Thursday that it will raise the price of its major coffee products by 300 won starting yesterday.
Kim said that the commission will check if Starbucks Korea is abusing its power in the market to lead to price rises at other coffee house chains.
“It is reasonable to raise prices when the production price [of the coffee drinks] goes up, but it’s never okay to collude [with other coffee franchises on] the prices or raise the price with no particular reason,” said Kim.