Regulator orders remedial action against GM Korea for restricting dealer advertising activities

GM Korea’s automobile plant in Bupyeong, west of Seoul, is seen in this file photo taken on Feb. 8, 2021. (Yonhap)

SEOUL, June 3 (Korea Bizwire)South Korea’s antitrust regulator has issued a remedial order to GM Korea Co. for its restriction of dealer advertising activities, as the local unit of General Motors Co. banned its dealers from advertising through online media, except Facebook.

The Fair Trade Commission (FTC) on Thursday ordered GM Korea to correct its abuse of power to restrict dealers’ online advertising activities, as well as notify all of its dealers of the remedies.

According to the FTC investigation, GM Korea issued social media guidelines to its dealers between April 2016 and recent days, preventing them from advertising through other online media except Facebook. .

Even when advertising through Facebook, they were only required to post content curated in advance through an authorized account.

GM Korea imposed penalties on dealers and salespeople who advertised on other social media channels.

They also had to submit a confirmation letter to ensure they would comply with GM Korea’s social media advertising guidelines.

The FTC has pointed out that such behavior constitutes unfair intervention by management activities that are prohibited under the Fair Agency Transaction Act.

Kevin Lee ([email protected])

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