The Fair Trade Commission (FTC) said it is trying to determine if CJ CGV, Lotte Cinema and Megabox forced customers to view extended advertisements and made excessive profits through the sales of snacks. (image: Jude Lee/flickr)
SEJONG, June 18 (Korea Bizwire) — South Korea’s antitrust watchdog said Thursday that it has started a probe to determine if local multiplex theaters engage in unfair trade practices that hurt consumers.
The Fair Trade Commission (FTC) said it is trying to determine if CJ CGV, Lotte Cinema and Megabox forced customers to view extended advertisements and made excessive profits through the sales of snacks. All three companies have been ordered to submit business-related records.
The top three multiplex chains controlled 90.1 percent of the local theater market as of 2013.
“The probe aims to see if the companies abused their market dominant positions to hurt consumers and break the country’s fair trade law,” the state regulator said.
In particular, the FTC said it will examine allegations of price gouging for snacks and beverages sold at theaters.
“There have been consistent complaints that snacks sold inside theaters cost more than those sold outside,” it said.
The FTC also said that multiplexes have been cited for charging upwards to 5,000 won (US$4.49) extra for 3D movies by including the cost of special glasses in the ticket price. The theaters retrieve the 3D viewing glasses after the movie so the customer is actually giving back the item that he or she purchased.
In addition, theaters have been criticized for forcing people to watch ads for as long as 20 minutes, which inconveniences consumers.
“The probe will be carried out in a speedy manner,” an FTC official said.
(Yonhap)
