[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