Abstract

The online product display method of online shopping operators basically has a common characteristic with the product display method of offiine large-scale retailers, and requires a search function as a decision aid provided for the purpose of helping consumers smoothly purchase due to the unique characteristics of the Internet shopping environment. However, this search function has a difference with the search function of a search setvice in which what the user wants is the search result itself for the purpose of providing information in that the search result is used as an intermediate process to check whether the product the customer wants is in stock and the location for the purpose of making a purchase decision. In addition, in that the online shopping operator's search function is a function related to the online product display method, it can be used similarly to the sales promotion activities of offiine large-scale retailers by displaying products on their shelves. Online shopping operators make specific adjustments to the algorithm applied to the recommendation system to promote sales by exposing certain products prominent on the search result screen. In this study, it was critically reviewed whether the conduct m which private brand('PB') products are exposed prior to products sold by third parties as a result of specific adjustments to the algorithm by combining the search function with the recommendation function for sales promotion by online shopping operators could be treated as a self-preferencing and unfair trade practices provision in the Monopoly Regulation and Fair Trade Act(“MRFTA”) could be applied to the conduct. Among the types of unfair trade practices, discrimination of trade terms and unfair customer inducement by deception, which are the conduct types that the Korea Fair Trade Commission applied to the behavior treated as a self-preferencing in other cases, and the principle of judging the impediment to fair trade common to the conduct types were reviewed from the interpretative perspective. Based on this review, as a hypothetical case, if a online shopping company makes specific adjustments to the algorithm as part of its sales promotion activities, and as a result, the company's PB products are exposed prominent in consumer search results than products sold by third parties, it was shown that the application of the unfair trade practices provision leads to some interpretation difficulties, and that a cautious approach is needed to determine impediment to fair trade.

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