Prohibited conduct of online shopping mall operators
- An online shopping mall operator shall not conduct any of the following activities (Article 21(1) of the Act on the Consumer Protection in Electronic Commerce, etc., Article 26 and Article 27 of the Enforcement Decree of the Act on the Consumer Protection in Electronic Commerce, etc., and Article 11-3 of the Enforcement Regulations of the Act on the Consumer Protection in Electronic Commerce, etc.).
1. Luring customers, concluding a deal with consumers, or interfering with customers’ cancellation, etc. in regards to orders or termination of contracts by providing false or exaggerated information or by using deceptive means
2. Changing or scrapping information such as the address, telephone number, Internet domain name, etc. for the purpose of interfering with cancellation of subscription and contract
3. Inflicting damage on consumers by neglecting to address the shortage of human resources or facilities required to resolve disputes or complaints for a considerable period of time
4. Supplying the products unilaterally, etc. even when the consumer has made it clear that he/she had no intention of placing an order, and requesting the ensuing payment, or requesting only the payment without supplying the products
5. Forcing the consumer to purchase products by telephone, facsimile, computer communications, electronic mail, etc. even though the consumer has made it clear that he/she had no intention to do so
6. Using the information on a consumer without obtaining his/her consent or beyond the boundary of such consent; however, this shall not apply to any of the following cases.
a. Where the delivery or forwarding of products is provided to the persons he/she is entrusted with
b. Where the installation of products, after-sales service, and other contracted services are provided to the persons he/she is entrusted with
c. Where it is necessary for the payment in connection with transaction of products
d. Where it is provided to any of the following persons in order to confirm the identity, real name, or true intention of customer
1) A key communications business operator under Subparagraph 1 of Article 5(3) of the Telecommunications Business Act
2) A personal credit rating company, individual business credit rating company, and personal credit information management company defined in of the Use and Protection of Credit Information Act
3) An electronic payment business operator, etc. directly involved in the payment of relevant transaction
4) A person who engages in the business of verifying the real names for the purpose of preventing identity theft under authorization or permission as prescribed by the Acts and subordinate statutes
e. Where it is used to verify the consent of a legal guardian in undertaking a transaction with a minor
7. Making computer programs, etc. installed without the consumer's consent or without providing an easy, clear explanation and notification to the consumers as to important matters such as their capacity, function, impact on the existing computer programs, and the methods to remove them before such programs become installed
Sanctions for violations
- Any person who carries out any conduct that falls under items 1 through 5 above shall be subject to an administrative fine not exceeding KRW 10 million (Subparagraph 2 of Article 45(3) of the Act on the Consumer Protection in Electronic Commerce, etc.).
- Any person who engages in a conduct that falls under items 1 through 6 above shall be given orders to enforce corrective measures by the Fair Trade Commission. If such conduct is repeated beyond the standard set forth under the Enforcement Decree of the Act on the Consumer Protection in Electronic Commerce, etc. even after receiving the corrective order, the Commission may order to fully or partially suspend the business or impose upon the relevant business operator penalty surcharges (Subparagraph 1 of Article 32(1), Article 32(4), and Article 34(1) of the Act on the Consumer Protection in Electronic Commerce, etc.).