Page 22 - 2024 ANNUAL REPORT FAIR TRADE COMMISSION
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Fair Trade Commission Annual Report 2024
In 2022, the FTC attached “Most favored customer policy forbidden” and 6 other undertakings when approving the merger of Chuan Lian Enterprise Co., Ltd. (hereinafter referred to as PX Mart) with RT-Mart International Ltd. (hereinafter referred to as RT-Mart) by
The FTC’s investigation showed that although the most favored customer stipulation in the supplier contract was deleted after the merger, PX Mart continued to ask for certain discounts adopted in other retail channels as price adjustment conditions and suppliers had to damages and the price differences resulting from price competition between retailers or suppliers. The practice was simply demanding that suppliers bear the cost and risk derived from competition between retailers.
The clause “Most favored customer policy forbidden” was a main consideration in the FTC’s approval of the merger while PX Mart also promised to remove the policy and delete related agreements and ways of execution stipulated in the supplier contract and price
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