Obligations to provide information on the online shopping mall operator’s identity and terms of transactions
Matters to be indicated, advertised, notified or provided
- An online shopping mall operator shall indicate, advertise, or notify the terms of a transaction of products in an appropriate manner to ensure that consumers can clearly understand them before concluding a contract and sign a deal without any error or discrepancy (Article 13(2) of the Act on the Consumer Protection in Electronic Commerce, etc.).
- Upon conclusion of a contract, an online shopping mall operator shall provide documents (including electronic documents, and the same shall apply hereafter) relating thereto to the other party of the contract prior to supplying the products (Article 13(2) of the Act on the Consumer Protection in Electronic Commerce, etc.).
Sanctions for violations
- A person who provides false identification information on a business operator or on the terms of a transaction shall be punished with a fine of up to KRW 10 million (Subparagraphs 1 and 2 of Article 43 of the Act on the Consumer Protection in Electronic Commerce, etc.).
- A person who fails to indicate, advertise, notify or provide the terms of a transaction or fails to deliver documents thereon prior to or immediately after the conclusion of the contract, he/she ① shall be punished with an administrative fine not exceeding KRW 5 million, and ② shall be ordered to take corrective measures by the Fair Trade Commission. If he/she does not indicate, advertise, notify or provide the terms of the transaction or does not deliver documents thereon despite the corrective order, he/she may be ordered to fully or partially suspend the business or be imposed penalty surcharges (Subparagraph 1 of Article 32(1), Article 32(4), Article 34(1), and Subparagraph 4 of Article 45(4) of the Act on the Consumer Protection in Electronic Commerce, etc.).
Precautions for transmitting advertising information for commercial gain
Prior consent for the transmission of advertising information by using an electronic transmission medium
- If an online shopping mall operator intends to transmit advertising information for profit by using an electronic transmission medium, he/she shall obtain explicit prior consent from an addressee to whom such information is addressed (Main provision of Article 50(1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.)
· However, where he/she falls under any of the following, such prior consent may not be required (A provision of Article 50(1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and Article 61(1) of the Enforcement Decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
√ Where a person who has directly collected contact details from the addressee in his/her dealings of products, etc. intends to transmit advertising information for profit on the same kinds of products, etc. as those he/she manages and has dealt with the addressee within 6 months from the date on which such transaction ended
√ Where a telemarketer under the Act on Door-to-Door Sales, etc. informs prospective customers of the collection source of their personal information by voice, and solicits them to buy products or services by means of telephone call
· Notwithstanding obtaining prior consent of the addressee, a person who intends to transmit advertising information for profit by using an electronic transmission medium during the time between 9:00 p.m. and 8:00 a.m. of the following day shall obtain express prior consent from the addressee of such information. However, the foregoing shall not apply to electronic mails (Article 50(3) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and Article 61(2) of the Enforcement Decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
- An online shopping mall operator who intends to transmit advertising information for profit, using an electronic transmission medium shall notify an addressee of the following matters within 14 days from the date the relevant addressee expresses his/her consent to receipt of messages, refusal to receive messages or withdrawal of his/her consent to receive messages (Article 50(7) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and Article 62-2 of the Enforcement Decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
√ Name of a sender
√ Fact that the addressee has consented to receive messages, refused to receive messages, or withdrawn his/her consent to receive messages, and the date he/she expresses the relevant intent
√ Results of handling thereof
- An online shopping operator who has obtained prior consent from an addressee shall regularly verify whether the relevant addressee gives consent to receive messages every 2 years from the date he/she obtains consent to receive messages from the addressee (referring to the day before every second year from the date he/she obtains consent to receive messages) (Article 50(8) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and Article 62-3(1) of the Enforcement Decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
- Any person who violates such obligations shall be punished with an administrative fine not exceeding KRW 30 million (Subparagraph 7 of Article 76(1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
Prohibition of transmitting advertisements against the will of refusal to receive such advertisements
- Where an addressee expresses his/her intention to refuse to receive information or revokes his/her prior consent, an online shopping mall operator who intends to transmit advertising information for profit by using an electronic transmission medium shall not transmit advertising information for profit (Article 50(2) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
- An online shopping mall operator who intends to transmit advertising information for profit, using an electronic transmission medium shall notify an addressee of the name of a sender, fact that the addressee has refused to receive messages, or withdrawn his/her consent to receive messages, and the date he/she expresses the relevant intent, and results of the action taken in relation thereto within 14 days from the date the relevant addressee expresses his/her refusal to receive messages or withdrawal of his/her consent to receive messages (Article 50(7) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., and Article 62-2 of the Enforcement Decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
- Sanctions for violations
· A person who transmits advertising information for profit to consumers who have expressed their intent to refuse receiving information thereof shall be punished with an administrative fine not exceeding KRW 30 million (Subparagraph 7 of Article 76(1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
· Any person who transmits commercial advertisements to consumers who have been registered in the system for the refusal of receipt of advertising shall be ① punished with an administrative fine not exceeding KRW 10 million (Subparagraph 7 of Article 45(3) of the Act on the Consumer Protection in Electronic Commerce, etc.), and ② subject to a corrective order or penalty surcharges enforced by the Fair Trade Commission. If he/she fails to take corresponding corrective measures, the Commission may issue an order for full or partial suspension of the business (Subparagraph 1 of Article 32(1), Article 32(4), and Article 34(1) of the Act on the Consumer Protection in Electronic Commerce, etc.).
Prohibition of harmful measures upon transmitting advertisements
- An online shopping mall operator who transmits advertising information for profit by using an electronic transmission medium shall not take any of the following measures (Article 50(5) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).
· Measures to avoid or interfere with an addressee's refusal to receive or revocation of his/her consent to receive advertising information
· Measures to automatically generate an addressee's contact information, such as telephone numbers and email addresses, by combining figures, codes, or letters
· Measures to automatically register telephone numbers or email addresses for the purpose of transmitting advertising information for profit
· Various measures to hide the identity of the sender of advertising information or the source from which advertising information is transmitted
· Various measures to induce an addressee to reply by deceiving him/her of the purpose of transmitting advertising information for profit
- Any person who violates such prohibition shall be punished by imprisonment with labor for up to 1 year or punished with a fine not exceeding KRW 10 million (Subparagraph 4 of Article 74(1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.).