The name of the Consumer-Centric Management (CCM) system, which evaluates whether corporate management activities are consumer-oriented, will change from 'certification' to 'business designation.' Companies applying for evaluation will pay the assessment fees directly to the designated assessment organization.
The Fair Trade Commission announced that the amendment to the enforcement decree of the Consumer Basic Act, which includes these changes, passed the Cabinet meeting on September 1.
This amendment follows the revision of the Consumer Basic Act in March. The revised law changes the name of the consumer-centric management certification system to the consumer-centric management business designation system and allows the assessment fees paid by companies to be treated as income for the assessment organizations.
The CCM system evaluates whether companies organize and operate all management activities, including product planning, production, sales, and after-sales service, with a focus on consumers. The amended enforcement decree aligns with the legal changes, renaming certification assessment organizations to designated assessment organizations and changing certification documents to designation documents. Terms such as certification assessment fees and certification standards will also be changed to business designation assessment fees and business designation standards, respectively.
Applicants for business designation must pay the assessment fees directly to the designated assessment organization before the evaluation takes place. The Fair Trade Commission will announce the amount of the assessment fees and the criteria and rates for reductions for small and medium-sized enterprises.
The structure and operation of the Consumer Policy Committee's expert committee will also be improved. The Consumer Policy Committee is a government-wide consultative body that deliberates and coordinates consumer-related policies. The expert committee serves as an advisory body that conducts preliminary research on issues requiring specialized review that are presented to the committee.
The current enforcement decree stipulates that senior officials from relevant central government departments must be appointed as expert committee members in advance. The amendment removes this provision, allowing responsible staff to attend meetings based on the agenda.
The authority to appoint private experts will also shift from the Prime Minister to the Chairperson of the Fair Trade Commission. This change aims to reduce the time required for committee composition and respond more swiftly to consumer issues. The term for private committee members is set at three years.
The amended enforcement decree will take effect on November 11, following presidential approval and promulgation.
* This article has been translated by AI.
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