[Federal Register Volume 60, Number 69 (Tuesday, April 11, 1995)]
[Notices]
[Pages 18411-18414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8861]
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FEDERAL TRADE COMMISSION
[File No. 931-0134]
Korean Video Stores, et al.; Proposed Consent Agreement With
Analysis to Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
prohibit, among other things, a Maryland based video store association
and its members from entering into any agreement to raise or fix prices
in the retail video tape rental business; and would require its members
to display an announcement of the settlement in their respective stores
and to publish the text of the corrective posters in three Korean-
language newspapers in the Washington, DC area.
DATES: Comments must be received on or before June 12, 1995.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Joseph G. Krauss, FTC/H-324, Washington, DC 20580. (202) 326-2713.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 2.34 of the
Commission's rules of practice (16 CFR 2.34), notice is hereby given
that the following consent agreement containing a consent order to
cease and desist, have been filed with and accepted, subject to final
approval, by the Commission, has been placed on the public record for a
period of sixty (60) days. Public comment is invited. Such comments or
views will be considered by the Commission and will be available for
inspection and copying at its principal office in accordance with
Sec. 4.9(b)(6)(ii) of the Commission's rules of practice (16 CFR
4.9(b)(6)(ii)).
In the Matter of: Korean Video Stores Association of Maryland,
an unincorporated association,
Chang Hyun Cho, individually and trading and doing business as
Hana Video;
Bong Soo Ha, individually and trading and doing business as
Video Town;
Yoo Kwan Jun, individually and trading and doing business as
Harford Video;
Dae Yong Kang, individually and trading and doing business as
Daenamoo Video;
Yong Hoon Kang, individually and trading and doing business as
Lotte Gifts Store;
Mi La Kim, individually and trading and doing business as Koryo
Video;
Ki Sik Kim, individually and trading and doing business as Video
Center;
Suk C. Kim, individually and trading and doing business as Nalee
Video;
Ju Young Lee, individually and trading and doing business as
Young Video;
Kyeong Hae Lee, individually and trading and doing business as
Korean Corner;
Chang Jin Park, individually and trading and doing business as
Samsung Video;
Mi Hwa Park, individually and trading and doing business as
Sarangbang Video;
Young Min Ro, individually and trading and doing business as
Hanyang Video;
Chae Sul Song, individually and trading and doing business as
Lucky Gifts;
Tae Eung Yu, individually and trading and doing business as
Hyundai Video; and
Seung Man Yun, individually and trading and doing business as
Gaymi Video; File No. 931-0134.
Agreement Containing Consent Order
The Federal Trade Commission (``Commission''), having initiated an
investigation of certain acts and practices of the Korean Video Stores
Association of Maryland, Chang Hyun Cho, Bong Soo Ha, Yoo Kwan Jun, Dae
Young Kang, Yong Hoon Kang, Mi La Kim, Ki Sik Kim, Suk C. Kim, Ju Young
Lee, Kyeong Hae Lee, Chang Jin Park, Mi Hwa Park, Young Min Ro, Chae
Sul Song, Tae Eung Yu, and Seung Man Yun, and it now appearing that the
Korean Video Stores Association of Maryland, Chang Hyun Cho, Bong Soo
Ha, Yu Kwan Jeon, Dae Yong Kang, Yong Hoon Kang, Mi La Kim, Ki Sik Kim,
Suk C. Kim, Ju Young Lee, Kyeong Hae Lee, Chang Jin Park, Mi Hwa Park,
Young Min Ro, Chae Sul Song, Tae Eung Yu, and Seung Man Yun,
hereinafter sometimes referred to as ``proposed Respondents,'' are
willing to enter into an agreement containing an Order to cease and
desist from certain acts and providing for other relief,
It is hereby agreed by and between the proposed Respondents and
counsel for the Commission that:
1. Proposed Respondent Korean Video Stores Association of Maryland
is an unincorporated trade association. Its mailing address is c/o
Nalee Video, 13-G Aquahart Plaza, Glen Burnie, MD 21061.
Proposed Respondent Chang Hyun Cho is an individual trading and
doing business as Hana Video, 220 N. Crain Highway, Glen Burnie, MD
21061.
Proposed Respondent Bong Soo Ha is an individual trading and doing
business as Video Town, 2092 Veirs Mill Road, Rockville, MD 20581.
Proposed Respondent Yu Kwan Jeon is an individual trading and doing
business as Harford Video, 8904 Harford Road, Baltimore, MD 21234.
Proposed Respondent Dae Yong Kang is an individual trading and
doing as Daenamoo Video, 5722 York Road, Baltimore, MD 21212.
Proposed Respondent Yong Hoon Kang is an individual trading and
doing business as Lotte Gifts Store, 2201 N. Charles Street, Baltimore,
MD 21218.
Proposed Respondent Mi La Kim is an individual trading and doing
business as Koryo Video, 10820-G Rhode Island Avenue, Beltsville, MD
20705.
Proposed Respondent Ki Sik Kim is an individual trading and doing
business as Video Center, 29 W. North Avenue, Baltimore, MD 21201.
Proposed Respondent Suk C. Kim is an individual trading and doing
business as Nalee Video, 13-G Aquahart Plaza, Glen Burnie, MD 21061.
Proposed Respondent Ju Young Lee is an individual trading and doing
business ad Young Video, 11790 Parklawn Drive, Rockville, MD 20852.
Proposed Respondent Kyeong Hae Lee is an individual trading and
doing business as Korean Corner, 12207 Veirs Mill Road, Wheaton, MD
20906. [[Page 18412]]
Proposed Respondent Chang Jin Park is an individual trading and
doing business as Samsung Video, 3425 N. Chathom Road #108, Ellicott
City, MD 21042.
Proposed Respondent Mi Hwa Park is an individual trading and doing
business as Sarangbang Video, 2430 York Road, Timonium, MD 21093.
Proposed Respondent Young Min Ro is an individual trading and doing
business as Hanyang Video, c/o Lucky World (Laurel), 14222 Cherry Lane
Ct., Laurel, MD 20707.
Proposed Respondent Chae Sul Song is an individual trading and
doing business as Lucky Gifts, 1690-D Annapolis Road, Odenton, MD
21113.
Proposed Respondent Tae Eung Yu is an individual trading and doing
business as Hyundai Video, 10539 Greenbelt Road, Seabrook, MD 20706.
Proposed Respondent Seung Man Yun is an individual trading and
doing business as Gaymi Video, 801 S. Crain Highway, Glen Burnie, MD
21061.
2. Proposed Respondents admit all the jurisdictional facts set
forth in the draft of complaint.
3. Proposed Respondent waive:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law;
c. All rights to seek judicial review or otherwise to challenge or
contest the validity of the Order entered pursuant to this agreement;
and
d. Any claim under the Equal Access to Justice Act.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of sixty (60) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this agreement and so notify the proposed Respondents, in which
event it will take such action as it may consider appropriate, or issue
and serve its complaint (in such form as the circumstances may require)
and decision, in disposition of the proceeding.
5. This agreement is for settlement purposes only and does not
constitute an admission by the proposed Respondents that the law has
been violated as alleged in the draft of complaint or that the facts as
alleged in the draft complaint, other than jurisdictional facts, are
true.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the Commission's
rules, the Commission may, without further notice to the proposed
Respondents, (1) Issue its complaint correspondent in form and
substance with the draft of complaint and its decision containing the
following Order to cease and desist in disposition of the proceeding,
and (2) make information public with respect thereto. When so entered,
the Order to cease and desist shall have the same force and effect and
may be altered, modified or set aside in the same manner and within the
same time provided by statute for other orders. The Order shall become
final upon service. Delivery by the U.S. Postal Service of the
complaint and decision containing the agreed-to Order to proposed
Respondents' addresses as stated in this agreement shall constitute
service. Proposed Respondents waive any right they may have to any
other manner of service. The complaint may be used in construing the
terms of the Order, and no agreement, understanding, representation or
interpretation not contained in the Order or the agreement may be used
to vary or contradict the terms of the Order.
7. Proposed Respondents have read the proposed complaint and Order
contemplated hereby. Proposed Respondents understand that once the
Order has been issued, they will be required to file one or more
compliance reports showing that they have fully complied with the
Order. Proposed Respondents further understand that they may be liable
for civil penalties in the amount provided by law for each violation of
the Order after it becomes final.
It is ordered that, as used in this Order, the following
definitions shall apply:
(A) ``Respondent Korean Video Association'' means the Korean Video
Stores Association of Maryland, its predecessors, subsidiaries,
divisions, members, committees, and groups and affiliates controlled by
the Korean Video Stores Association of Maryland, their directors,
officers, employees, agents, and representatives, and their successors
and assigns.
(B) ``Individual Respondents'' means Chang Hyun Cho, individually
and trading and doing business as Hana Video; Bong Soo Ha, individually
and trading and doing business as Video Town; Yoo Kwan Jun,
individually and trading and doing business as Harford Video; Dae Yong
Kang, individually and trading and doing business as Daenamoo Video;
Yong Hoon Kang, individually and trading and doing business as Lotte
Gifts Store; Mi La Kim, individually and trading and doing business as
Koryo Video, Ki Sik Kim, individually and trading and doing business as
Video Center; Suk C. Kim, individually and trading and doing business
as Nalee Video; Ju Young Lee, individually and trading and doing
business as Young Video; Kyeong Hae Lee, individually and trading and
doing business as Korean Corner; Chang Jin Park, individually and
trading and doing business as Samsung Video; Mi Hwa Park, individually
and trading and doing business as Sarangbang Video; Young Min Ro,
individually and trading and doing business as Hanyang Video; Chae Sul
Song, individually and trading and doing business as Lucky Gifts; Tae
Eung Yu, individually and trading and doing business as Hyundai Video;
Seung Man Yun, individually and trading and doing business as Gaymi
Video; and their respective successors and assigns.
(C) ``Respondents'' means the Respondent Korean Video Association
and the Individual Respondents.
(D) ``Commission'' means the Federal Trade Commission.
(E) ``Video tapes'' means pre-recorded video cassette tapes.
(F) ``Retail video tape rental business'' means the business of
renting pre-recorded video cassette tapes for a fee to retail
customers.
II
It is further ordered that Respondents, directly or indirectly, or
through any corporation, association, or other device, in connection
with the retail, video tape rental business, in or affecting commerce,
as ``commerce'' is defined in the Federal Trade Commission Act, as
amended, forthwith cease and desist from:
(A) Entering into, attempting to enter into, organizing,
continuing, adhering to, or maintaining any combination, conspiracy,
contract, agreement, understanding, plan, or program with any person in
the retail video tape rental business to construct, fix, stabilize,
raise, maintain, or otherwise interfere or tamper with the prices
charged or other terms or conditions for retail video tape rentals;
(B) Recommending or encouraging any person in the retail video tape
rental business to charge certain prices or set other terms or
conditions for retail video tape rentals;
(C) For a period of three (3) years after the date this Order
becomes final, continuing any formal or informal [[Page 18413]] meeting
of the Respondent Korean Video Association or of any Individual
Respondents, after:
1. Any person makes a statement, addressed to or audible to the
body of the meeting, concerning the prices of retail video tape rentals
and Respondents fail to declare such statement to be out of order;
2. Any person makes two such statements concerning the prices of
retail video tape rentals and Respondents fail to eject him or her from
the meeting; or
3. Two people make such statements concerning the prices of retail
video tape rentals.
Provided, however, that without regard to the obligations of
Respondent Korean Video Association under Paragraph II. (C), if a
person making a prohibited statement is not ejected, and such meeting
continues, then the Individual Respondents shall instead leave such
meeting and within thirty (30) days after such meeting shall report to
the Commission the circumstances of such meeting, a description of the
prohibited statements and Respondents' actions in response thereto.
III
It is further ordered that Respondent Korean Video Association,
directly or indirectly, or through any corporation, association, or
other device, in connection with the retail video tape rental business,
in or affecting commerce, as ``commerce'' is defined in the Federal
Trade Commission Act, as amended, forthwith cease and desist from:
(A) Prohibiting, regulating, or advising against any form of price
competition between or among persons in the retail video tape rental
business; and
(B) Inviting, coordinating or providing a forum for any discussion
or agreement between or among persons in the retail video tape rental
business concerning prices charged for retail video tape rentals.
IV
It is further ordered that:
(A) Each Individual Respondent shall, within thirty (30) days after
the date this Order becomes final, prepare and for a period of sixty
(60) days, clearly display a corrective poster at each Individual
Respondent's place of business. Each poster shall be in both English
and Korean, shall be no less than two feet by two feet in size, and
shall have the text of Appendices A and B, attached to this Order,
enlarged and conspicuously displayed thereon; and
(B) Respondent Korean Video Association shall, within thirty (30)
days after the date this Order becomes final, publish Appendix B to
this Order in the Metropolitan Washington, DC editions of the
Periodicals Korea Times, Joong Ang Ilbo, and Chosun Ilbo.
V
It is further ordered that:
(A) Respondent Korean Video Association and the Individual
Respondents shall, within ninety (90) days after the date this Order
becomes final, file with the Secretary of the Federal Trade Commission
a verified written report setting forth in detail the manner and form
in which Respondents have complied and are complying with this Order.
Among such other information as may be required, the Individual
Respondents' compliance reports shall contain a picture of the
corrective poster as displayed and the dates such poster was displayed;
(B) Respondent Korean Video Association shall, annually for three
(3) years on the anniversary of the date this Order becomes final, file
with the Secretary of the Federal Trade Commission a verified written
report setting forth in detail the manner and form in which Respondents
have complied and are complying with this Order; and
(C) Respondent Korean Video Association and the Individual
Respondents shall, for a period of three (3) years after the date this
Order becomes final, notify the Federal Trade Commission at least
thirty (30) days prior to any proposed change in any Respondent, such
as dissolution, assignment, sale resulting in the emergency of a
successor organization, or the creation or dissolution of subsidiaries,
or any change in such Respondent that may affect compliance obligations
arising out of this Order.
VI
It is further ordered that, for the purpose of determining or
securing compliance with this Order, Respondents shall permit any duly
authorized representative of the Commission:
(A) Access, during office hours and in the presence of counsel, to
inspect and copy all books, ledgers, accounts, correspondence,
memoranda and other records and documents in the possession or under
the control of a Respondent relating to any matters contained in this
Order; and
(B) Upon five days' notice to a Respondent and without restraint or
interference from it, to interview officers, directors, or employees of
such Respondent.
VII
It is further ordered that this order shall terminate twenty (20)
years from the date of issuance.
Appendix A
Annoucement
The Korean Video Stores Association of Maryland (the ``Korean
Video Association'') and its individual members (Chang Hyun Cho,
Bong Soo Ha, Yoo Kwan Jun, Dae Young Kang, Young Hoon Kang, Mi La
Kim, Ki Sik Kim, Suk C. Kim, Ju Young Lee, Kyenong Hae Lee, Chang
Jin Park, Mi Hwa Park, Young Min Ro, Chae Sul Song, Tae Eung Yu, and
Seung Man Yun) have entered into a consent agreement with the
Federal Trade Commission (``Commission'') to settle the Commission's
charges that the Korean Video Association and its individual members
named above violated section 5 of the Federal Trade Commission Act
when they jointly decided to increase prices for retail video tape
rentals in 1993. The U.S.antitrust laws, including the Sherman Act
and the Federal Trade Commission Act, prohibit competitors in the
same line of business from jointly setting prices they charge to
their customers.
Pursuant to this consent agreement, the Commission has issued an
Order that prohibits the Korean Video Association and its individual
members from jointly deciding prices that they charge to their
customers in the retail video tape rental business. The Order also
prohibits the Korean Video Association and its individual members
from taking any other actions that may harm price competition.
The Korean Video Association and its individual members also
understand and agree to honor that each person in the retail video
tape rental business must unilaterally and independently determine
its own prices.
Korean Video Stores Association of Maryland
Chang Hyun Cho, Hana Video
Dae Yong Kang, Daenamoo Video
Ki Sik Kim, Video Center
Kyeong Hae Lee, Korean Corner
Young Min Ro, Hanyang Video
Seung Man Yun, Gaymi Video
Bong Soo Ha, Video Town
Yong Hoon Kang, Lotte Gifts Store
Suk C. Kim, Nalee Video
Chang Jin Park, Samsung Video
Chae Sul Song, Lucky Gifts
Yoo Kwan Jun, Harford Video
Mi La Kim, Koryo Video
Ju Young Lee, Young Video
Mi Hwa Park, Sarangbang Video
Tae Eung Yu, Hyundai Video
Appendix B
(Appendix B is the Korean version of Appendix A and is available
from the Commission's Public Reference Branch, H-30, 6th and Pa.
Ave., NW, Washington, DC 20580). [[Page 18414]]
Analysis of Proposed Consent Order to Aid Public Comment
The Federal Trade Commission (``the Commission'') has accepted an
agreement to a proposed consent order from the Korean Video Stores
Association of Maryland, Chang Hyun Cho, Bong Soo Ha, Yoo Kwan Jun, Dae
Yong Kang, Yong Hoon Kang, Mi La Kim, Ki Sik Kim, Suk C. Kim, Ju Young
Lee, Kyeong Hae Lee, Chang Jin Park, Mi Hwa Park, Young Min Ro, Chae
Sul Song, Tae Eung Yu, and Seung Man Yun (``Respondents'').
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
The Commission's investigation of this matter concerns the
Respondents' joint retail video tape rental pricing activity in 1993.
The Commission alleges in its proposed complaint that: the Respondents
agreed to increase the retail price of Korean language video tape
rentals in the Metropolitan Washington, D.C. area; and, in furtherance
of the joint price increase agreement, the Respondents announced the
price increase to the general public by displaying at each Respondent's
place of business a poster setting forth the joint price increase
agreement and signed in the name of the Korean Video Stores Association
of Maryland (``Video Association''). The Commission alleges that the
Respondents' acts and practices constitute unfair methods of
competition in violation of Section 5 of the Federal Trade Commission
Act.
The order, accepted for public comment, prohibits the Respondents
from directly or indirectly entering into a price fixing agreement in
the retail video tape rental business. The order also prohibits the
Respondents from taking any other actions that may harm price
competition in the retail video tape rental business. In addition, the
order requires the individual Respondents to either discontinue or
leave a meeting of the Respondents if a person or persons make
impermissible statements concerning retail video tape rental fees.
The order would also prohibit the Video Association from
interfering with its individual members' pricing decisions and from
acting as a forum for discussion or agreement on retail video tape
rental fees. The order further requires the Respondents to display a
corrective poster at each Respondent's place of business, and requires
the Video Association to publish the Korean text (translated to Korean
by Commission staff from the English version approved by the
Commission) of the corrective poster in three major local Korean
language daily newspapers.
Under the order, the Respondents are required to file written
compliance reports with the Commission. The order terminates
automatically twenty years from the date of issuance.
The purpose of this analysis is to facilitate public comment on the
proposed order, and it is not intended to constitute an official
interpretation of the agreement and proposed order or to modify in any
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 95-8861 Filed 4-10-95; 8:45 am]
BILLING CODE 6750-01-M