Korea National Council of Consumer Organizations

School Uniform Businesses Should Immediately Stop Interfering with Consumer Organizations’ Survey on the Reality of Uniform Prices.

We at KNCCO find it truly regrettable that the Korean School Uniform Business Association (composed of Elite Basic, School Looks, and two others) has taken a group action -- such as suing us for interfering in their business and claiming reparation for damages -- concerning our announcement of the result of estimation of costs of school uniforms, which was done in an effort to lower the prices.

The Ministry of Strategy and Finance (MOSF) supported our special survey of prices, having viewed our survey as helpful to price stabilization. The Korea Consumer Affairs Institute conducted a reality survey on school uniforms as part of a frugality campaign. In association with the Ministry of Education, said institute carried out -- between November 2012 and May 2013 -- a study on how to purchase school uniforms at reasonable prices and how to improve the relevant consumption structure. According to the study, school uniform prices contain a considerable bubble; it then made suggestions on easing parents’ financial burden concerning school uniforms, e.g., adoption of open bidding, schools’ package purchase of uniforms, imposition of a ceiling on uniform prices, standardization of the quality of uniforms, adoption of simplified summer uniforms, etc.

Said institute noted that only a few businesses account for three-quarters of the school uniform market -- which seemed rather extraordinary -- and disclosed the estimated cost of uniforms based on its reality survey.

Needless to say, the relevant businesses should strive to set uniform prices at a reasonable level through innovative efforts in the production and distribution system. The fact that they are threatening consumer organizations with group actions designed to stop activities initiated to protect consumers is nothing short of ridiculous.

Article 28 (Activities, etc., of Consumer Organizations) of the Framework Act on Consumers states thus: “Consumer organizations shall carry out the following activities: price watching and recommendation of policy for the rights and interests of consumers; tests and inspection on standardized grade or type, quality, safety, and environment-friendliness of goods, etc., and; survey and analysis on the transaction terms or methods including prices, etc. They may publish the results of the survey, analysis, etc., stated in the foregoing to protect the rights and interests of consumers.”