The Korea Fair Trade Commission (“KFTC”) revised the Guideline on Types of and Criteria for Unfair Trading on Free Gift (hereinafter, “Gift Guideline”) for enforcement starting November 7, 2012.

The Gift Guideline provides that a “consumer gift sweepstake” falls under unfair competitive means when the trading value of each gift or the sum of all gifts provided exceeds set limits. Here, “consumer gift sweepstake” refers to the offering of free gifts to ordinary consumers through a sweepstake (e.g., receipt code sweepstake, bottle code sweepstake) as an accompaniment to the main transaction for product or service.

The revised Gift Guideline dramatically increases the limits on both the per unit trading value of each gift and the sum of all gifts provided.

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The increased limit on the per unit trading value of each gift in a gift sweepstake is expected to increase the enterprisers’ use of consumer gift sweepstakes.