FTC approves Coupang’s co-prosperity plan for its private brand contract
The Fair Trade Commission (FTC) has approved a 3 billion won ($2 million) "co-prosperity" remedy package proposed by Coupang to resolve its allegation that the e-commerce giant unfairly slashed supply prices for its private brand (PB) products. The decision will allow Coupang to avoid regulatory sanctions and will instead fund product development, advertising and other related expenses for its subcontractors. Since October 2022, Coupang had been under investigation for violating the Fair Transactions in Subcontracting Act. The company allegedly failed to issue formal, legally compliant contracts to 314 subcontractors. It was also accused of forcing 94 suppliers to fund uncontracted promotional events and cut supply prices for its PB goods. The FTC finalized Tuesday the consent decree for Coupang and Coupang Private Label Brands, which handles manufacturing and sales operations for the retailer’s private brand products. Under the consent decree, companies can settle antitrust cases without admitting liability by offering voluntary remedies. The decision marks the first time a consent dec
