Gore handed fine by South Korea’s FTC

31/08/2017
US functional materials developer W.L. Gore & Associates has been fined 3.67 billion won ($3.3 million) by South Korea’s Fair Trade Commission (FTC) for its role in keeping the prices of its Gore-Tex fabrics at an artificially high level.

According to the FTC, between March 2009 and December 2012, the company put pressure on 29 outdoor clothing brands to withhold supplying products featuring Gore-Tex fabrics to major retailers. 

Local media reports have said that Gore sent “undercover” employees to major retailers to check if any of the 29 brands were still selling products to them. Those that were found to have violated Gore’s policy reportedly had their contracts terminated. 

In its defence to the FTC, Gore argued that its actions were a means to ensure the status of Gore-Tex fabrics as a high-quality product. FTC disagreed with this argument, reference data showing that prices of Gore-Tex fabrics has risen excessively during the period.