FTC hits Coupang with rocket fresh accusations of delayed seller payment

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FTC hits Coupang with rocket fresh accusations of delayed seller payment

Coupang headquarters in Songpa District, southern Seoul [NEWS1]

Coupang headquarters in Songpa District, southern Seoul [NEWS1]

 
Korea's Fair Trade Commission (FTC) alleges in its latest examiner's report that Coupang delayed payments to sellers and failed to remit the legally required interest for the delay.
 
The New York-listed e-commerce company was accused of violating the Act on Fair Transactions in Large Retail Business, which states that retail platforms are required to pay sellers on their platform within 60 days of a transaction.
 

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The company is also alleged to have delayed its payment past the 60-day limit and has also not paid compensation for the delay, set at 15.5 percent, according to the FTC.
 
Coupang first purchases the products from sellers and stores them at the platform’s distribution centers before selling them to the customers.
 
The FTC notified the retail giant on Friday, and the antitrust watchdog will be hosting a meeting to decide on disciplinary measures, such as a corrective order, penalty fees or a lawsuit that the commission will file.
 
The report may trigger the antitrust watchdog to begin its effort to reduce the payout period for online platforms.
 
“Coupang will sincerely address the issue during the discussion process with the FTC,” the e-commerce platform told the Korea JoongAng Daily on Friday.

BY LEE SEUNG-NYEONG, CHO YONG-JUN [[email protected]]
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