Online shopping
※ Online shopping is carried out by means of electronic documents, and falls under the category of mail order. Although TV home shopping and catalog-based shopping are types of mail order, they are not regarded as e-commerce. Therefore, this document is focused purely on online shopping, which falls under the category of e-commerce and mail order.
E-commerce
- “E-commerce” refers to a transaction that is fully or partially conducted by electronic means such as electronic x-document when buying and selling goods or services (“goods etc.”) (Article 2-1 of the 「Act on the Consumer Protection in Electronic Commerce, etc.」and Article 2-5 of the 「Framework Act on Electronic Documents and Transactions」).
Mail order
- “Mail order” refers to both the provision of information on the sale of goods etc. by means of mail, telecom or other methods and to the sale of goods etc. after receiving an order from a consumer, using one of the following methods. (Article 2-2 of the 「Act on the Consumer Protection in Electronic Commerce, etc.」and Article 2 of the 「Enforcement Rule of the Act on the Consumer Protection in Electronic Commerce, etc.」)
· Advertisements, ad facilities, leaflets, broadcasting, newspapers or magazines, etc.
· Postal order/transfer, GIRO, inter-account transfer without face-to-face contact between the seller and the buyer.
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The difference between mail order and e-commerce
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Q. Does online shopping belong to the category of mail order or e-commerce? A. In e-commerce, the use of electronic documents is a must, whereas it is not in mail order. For mail orders, all transactions are carried out without face-to-face contact between seller and buyer, but they do not fall under the category of e-commerce. Online shopping belongs to the category of mail order and e-commerce; whereas TV home shopping and catalog-based shopping belong to the category of mail order, but not to that of e-commerce. An instance of signing a contract offline and paying the price via Internet banking or by credit card, or an instance of signing a contract offline and attending online classes, belongs to the category of e-commerce, but not to that of mail order. <Consumer consultration Center of Fair Trade Commistion)>
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※ Examples of mail order
(1) A customer saw a product ad in a cyber-mall and purchased goods by paying a visit to the store in person.
⇒ The foregoing does not fall under the category of mail order, as the provision of information was done without face-to-face contact between the seller and the buyer, but the purchase was made through face-to-face contact. (「Guidelines on the Consumer Protection in Electronic Commerce, etc.」 (FTC Public Notice No. 2015-7 dated August 20, 2015) Ⅱ, 2, Ga, (1)).
(2) A business sold vouchers for a meal at a restaurant at a cyber-mall run by the former.
⇒ The foregoing belongs to the category of mail order. The said business provides information on the vouchers and sells them in a non-face-to-face way. (「Guidelines on the Consumer Protection in Electronic Commerce, etc.」 Ⅱ, 2, Ga, (2)).
- An instance of offering goods to consumers and signing purchasing contracts over the phone does not belong to the category of mail order. (Article 2-2 proviso of the 「Act on the Consumer Protection in Electronic Commerce, etc.」and Article 2-3 of the 「Act on Door-to-Door Sales, etc.」)
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Items that cannot be sold by mail order
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Q. Can I purchase cigarettes or liquor through an online shopping mall? A. Cigarettes can only be sold by a retailer designated by the head of Si, Gun and Gu. The sale of cigarettes through an online shopping mall is prohibited (Article 12 (2) and (4) of the 「Tobacco Business Act」). Violators are subject a fine of KRW 5 million or less (Article 27-3-1 of the 「Tobacco Business Act」). As for the online sale of liquors, publicity, purchasing order receipt, payment, and delivery of goods should all be done through a designated home page (Article 4 (1) of the 「Public Notice on Entrusted Order about Mail Order of Liquors」 ).
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Online shopping-related laws
「Act on the Consumer Protection in Electronic Commerce, etc.」
- The 「Act on the Consumer Protection in Electronic Commerce, etc.」 stipulates the general matters pertaining to e-commerce and mail order, such as how e-commerce and mail order transactions are established, how consumers can withdraw an order or cancel a contract, and the regulation of businesses to protect consumers’ rights and interests. The said law also provides clauses on the use of information on consumers, reporting by mail order distributors, confirmation/cancellation of orders, prohibited acts, contracts, etc. of consumer damage compensation insurance, etc. (Article 1 of the 「Act on the Consumer Protection in Electronic Commerce, etc.」).
「Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.」
- The 「Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.」 sets forth the mandatory obligations concerning the collection, use, provision, management and destruction of users’ personal information by information/communications service providers, and the latter's obligation to protect their users' personal information. It also provides the personal information management right of users of information/communications networks and prohibits the distribution of illegal information that may infringe the users' and other persons' right to privacy or tarnish their reputation (Article 1 of the 「Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.」).
「Framework Act on Electronic Documents and Transactions」
- The 「Framework Act on Electronic Documents and Transactions」 aims to clarify the legal relevance of electronic documents and electronic transactions, ensure the security and reliability of electronic documents and electronic transactions, and establish the infrastructure required to facilitate the use thereof (Article 1 of the 「Framework Act on Electronic Documents and Transactions」).
「Framework Act on Consumers」
- The 「Framework Act on Consumers」 is intended to enhance the interests of consumers, improve the quality of life of consumers, develop the national economy by preventing danger or injury to consumers, and settle disputes between businesses and consumers. To that end, the act stipulates matters pertaining to product recall, consumer remedy-related bodies operated by the central and local governments, consumer organizations, the criteria for agreement or recommendation on the settlement of disputes to be made by the Korea Consumer Agency, and consumers’ class actions (Article 1 of the 「Framework Act on Consumers」).
「Act on the Regulation of Terms and Conditions」
- The 「Act on the Regulation of Terms and Conditions」 aims to establish sound order in business transactions, prevent businesses from preparing unfair terms and conditions and using them in business transactions by taking unfair advantage of their bargaining position, and to regulate unfair terms and conditions. (Article 1 of the 「Act on the Regulation of Terms and Conditions」).