The Fair Trade Commission on Monday said that it has fined Caffe Bene, the country’s largest coffee franchise, 1.94 billion won ($1.88 million) for abusing its market power in dealings with proprietors.
The FTC found Caffe Bene guilty of forcing shop owners selling coffee under its brand to bear the costs of a promotional event arranged with KT Corp. in 2010.
Caffe Bene initially promised to shoulder half of the costs but later reneged on the deal, forcing the shop owners to pay for the event. The FTC also accused the coffee chain of forcing shop owners to use its interior materials and devices when opening a shop. It earned 181.3 billion won in sales from such practices, which lasted from November 2008 to April 2012, according to the FTC. That accounted for 55.7 percent of the company’s sales during that period.
