The headquarters of 'Yup Deok', which specializes in spicy rice cakes, has come under scrutiny from South Korea's Fair Trade Commission (FTC) for forcing its franchisees to buy certain electronic devices, such as kiosks, from specified suppliers. The FTC has issued a rectification order due to the franchise's practice of designating POS systems, kiosks, and digital advertising displays as mandatory purchases only from particular vendors. This practice limited franchisees’ options and imposed penalties for violating these purchasing stipulations.

According to the FTC's announcement, 'Yup Deok' required franchise owners to purchase the specified electronic devices within set time frames, maintaining that this practice was to ensure uniformity across its franchised locations. However, the FTC questioned this justification, indicating that these electronic devices are readily available on the market from multiple suppliers. The commission's analysis showed no substantial need to force franchisees to procure any electronic items exclusively from designated vendors, as similar products with equivalent functionalities could be easily sourced elsewhere.

As a result, the FTC concluded that the practices employed by 'Yup Deok' constituted an unfair restriction of trading partners under the franchise business law. An FTC representative expressed hopes that this correction would enable franchise owners to make independent purchasing decisions for necessary electronic equipment, which could lead to cost savings. They also emphasized a commitment to rectifying similar restrictive practices in the future, aimed at promoting fair competition and empowering franchise owners in their business operations.