Chanel, Hermes, and Nike have made changes to rectify what were cited as unfair business practices concerning customers. The changes were In response to a review by the Fair Trade Commission (FTC), the nation's antitrust agency,
The FTC deemed certain terms imposed by the brands as "unconditional" and in violation of local laws on contract terms, as per Korea Times.
FTC Upholds Customers' Rights
Chanel Korea announced that it would no longer deprive customers of their memberships based on presumed shopping patterns aimed at reselling. Similarly, Nike Korea stated that it would restrict orders or cancel contracts with customers only if the company believes that the customer's intent is to resell the products.
Disputing the brands' claims that resale could cause harm to other customers, the FTC firmly asserted that customers have the right to decide whether to resell the products in question. The antitrust agency maintained that the restriction of resale by the brands contradicted local laws, which safeguard customers' autonomy over their possessions.
In light of the FTC's review, Chanel, Hermes, and Nike addressed a total of 10 unfair terms concerning customers. Additionally, the FTC ordered the brands to rectify other unjust terms discovered as well.
Editing Reviews and Copyright Infringement
Chanel previously retained the right to edit online product reviews, while Nike possessed rights over reviews posted by customers. The FTC argued that such terms could potentially infringe on the copyrights held by customers. To comply with the FTC's order, both brands revised their policies to require consent from customers for the use of their online reviews.
Customers' Data Protection
Adding to Chanel Korea's recent compliance issues, the brand was fined 3.6 million won ($2,770) by the Personal Information Protection Commission for improperly collecting personal information from customers, according to Korea Joongang Daily. The violations included the collection of birth dates, residence locations, and contact numbers from customers waiting in line at an offline Chanel store.
Photo: Craig Lovelidge/Unsplash


Rio Tinto's Resolution Copper Mine: U.S. Smelting Challenges and Global Operations Update
CK Hutchison's Panama Ports Dispute Escalates as Arbitration Claims Surpass $2 Billion
Golden Dome Missile Defense: Anduril and Palantir Join Forces on Trump's $185B Space Shield
SLMG Beverages Eyes Price Hikes Amid Rising Packaging Costs and India's Booming Soft Drink Market
Sonova Shares Slip as Hearing Aid Giant Lowers Growth Outlook and Plans Sennheiser Exit
Merck's $6 Billion Bid for Terns Pharma Signals Bold Oncology Push
Nintendo Switch 2 Production Cut as Holiday Sales Miss Targets
Meta Ties Executive Pay to Aggressive Stock Price Targets in Major Retention Push
Reflection AI Eyes $25 Billion Valuation in Massive $2.5 Billion Funding Round
Goldman Sachs Raises ECB Rate Hike Forecast Amid Persistent Energy-Driven Inflation
Air Canada Express Crash at LaGuardia: Controller Distracted by Prior Emergency
9 Tips for Avoiding Tax Season Cyber Scams
Valero Port Arthur Refinery Explosion Prompts $1M Lawsuit Over Worker Safety Negligence
NAB Plans to Cut 170 Jobs While Expanding Offshore Operations
Finnair Orders 18 Embraer E195-E2 Jets in Landmark Fleet Overhaul
Nanya Technology Shares Surge 10% After $2.5 Billion Private Placement from Sandisk and Cisco 



