Fair Trade Commission targets food delivery apps

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Fair Trade Commission targets food delivery apps

The Fair Trade Commission on Thursday slapped a combined fine of 17.5 million won ($15,500) on six food delivery apps for unfair business practices such as hiding bad reviews, misguiding users with positive employee-written reviews and posting higher order numbers for restaurants that paid app developers.

“The penalty was levied on delivery apps, which are representative mobile-based online-to-offline businesses that have been growing rapidly in recent years, for their deceitful acts against consumers,” said an official at the antitrust agency.

The apps that were fined include market leaders Baedal Minjok and Baedal Tong as well as Yogiyo, Baedaul 365, Menu Box and Baedalio.

The app delivery business has been growing rapidly in recent years. The number of users on the three major delivery apps, Baedal Minjok, Baedal Tong and Yogiyo, surged nearly 1,100 percent between 2013 and 2015 from 873,000 to 10 million.
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