A fine of 10% of sales is being pursued for conglomerate heads who omit affiliates
The Fair Trade Commission is revising fines, strengthening direct sanctions on conglomerate heads and reporting requirements for large corporations Check the key points of the FTC restructuring in the second half of the year, including omitted affiliates, collusion, and exaggerated advertising
The Fair Trade Commission plans to push within this year for a legal amendment that would allow it to directly impose fines on the heads of major conglomerates who fail to report affiliated companies. The fines could be applied up to 10% of the larger amount between the total assets or average annual sales of the omitted affiliate.
This measure is intended to address the limitations of the current system, under which sanctions could be imposed only on corporations when shell affiliates are detected. The FTC said it would strengthen the responsibility of individual group heads in order to reduce repeated failures to properly submit corporate group designation materials.
The FTC is also reviewing revisions to the sanction standards for private gain exploitation, stronger penalties for repeated collusion, and adjustments to the leniency program. In addition, it identified limiting delivery app fees, investigating exaggerated advertising of AIgenerated images, and raising fines under the Labeling and Advertising Act as key tasks for the second half of the year.