The North Face was recently hit with a four and a half million dollar fine in Korea for charging a fixed price for theirs goods, and I have no idea why.
The nation’s antitrust watchdog hit The North Face Korea last week with a 5.2 billion won ($4.6 million) fine for compelling all 151 of its retailers here to charge 10 to 15 percent higher prices than for rival brands since 1997 to maintain the brand’s premium image.
The Fair Trade Commission said that the unfair practices of the brand with over 30 percent market share also affected rival companies such as Kolon Sports, K2 and Columbia. Korean consumers also had to pay 50 percent more for the brand’s down jacket due to the price-fixing, according to Seoul Young Men’s Christian Association.
The way the article is written, it’s basically saying that they got slapped with a ginormous fine for trying to set a market price on their products.
How in the flying fuck is that illegal? Like how do you selectively enforce that? It’s not like Chanel and Gucci fucking sell their shit as low as they possibly can. Hell, even the fucking Gap doesn’t do that.
Korean consumers had to pay 50% more than what? Is anybody forcing them to buy the jackets? What?
I’m not familiar with Korean business law, so please school me on how it’s possible for them to get hit with this fine. Also, explain why it apparently only applies to The North Face, since it just seems like they want to price their brand so that it becomes an exclusive item … like every other designer brand out there on the market. Ever.