FTC Conducts On-Site Inspections of Nongshim, Paldo, Ottogi and Others Over Ramen Price-Fixing

The Fair Trade Commission has launched an investigation into allegations that major food companies, including Nongshim and Paldo, colluded on ramen prices.

According to industry sources on October 28, investigators from the FTC's Intensive Investigation Planning Group visited the headquarters of Nongshim, Paldo, Samyang Foods, and Ottogi that day to obtain materials related to ramen sales.

The FTC is reportedly investigating after finding indications that these companies colluded on the prices of food products, including ramen. It is also examining whether they engaged in resale price maintenance.

Resale price maintenance refers to a manufacturer's setting a sales price and enforcing it, for example by requiring distributors to sell products at or above a specified price.

This is the second case taken up by the Intensive Investigation Planning Group, which was launched on October 1. Following its first case, the group is examining allegations of collusion in the food industry.

In its first case, the group is investigating whether Daesang, Ottogi, and CJ CheilJedang colluded on prices for food products such as kimchi, tofu, cooking oils, gift sets, ready-to-eat rice, and fermented pastes, and engaged in resale price maintenance.

This content was produced with the assistance of AI translation services.