Recommendation for Correction
Recommendation for correction- If the Fair Trade Commission has no time to order a franchiser that violates the Fair Transactions in Franchise Business Act to take corrective measures, it may prepare a correction scheme and recommend that the franchiser comply with such scheme (Article 34(1) of the 「Fair Transactions in Franchise Business Act」).
※ However, where mediation takes place in the Franchise Business Transaction Dispute Mediation Council, the Fair Trade Commission shall not issue the recommendation for correction without special grounds (Article 33(2) of the 「Fair Transactions in Franchise Business Act」).
Procedures and effect of recommendation for correction- Procedures of recommendation for correction
· The Fair Trade Commission shall make recommendations for correction in writing, specifying the following: the details of the violation of laws; recommendations; the period for correction; the period for notifying; whether a recommendation is accepted; and measures to be taken when a franchiser refuses to accept a recommendation (Article 33 of the 「Enforcement Decree of the Fair Transactions in Franchise Business Act」). In this case, the Fair Trade Commission shall also report that the franchiser will be deemed to have taken corrective measures upon accepting the recommendation (Article 34(1) of the 「Fair Transactions in Franchise Business Act」).
· A franchiser that receives a recommendation shall notify the Fair Trade Commission as to whether it accepts the recommendation within ten days from the date of receipt of notice of such recommendation (Article 34(2) of the 「Fair Transactions in Franchise Business Act」).
- Effect of recommendation for correction
· When a franchiser in receipt of a recommendation accepts the recommendation, it shall be deemed that corrective measures have been taken (Article 34(3) of the 「Fair Transactions in Franchise Business Act」).