- Specification of matters delegated to lower laws to regulate online dark patterns -
- Consumer consent required within 30 days before an increase in regular payment amount and within 14 days before conversion to a paid subscription -
The Korea Fair Trade Commission (hereinafter referred to as the “FTC”) announced that it will issue a legislative notice for the amendments to the Enforcement Decree and Enforcement Rules of the amended “Act on Consumer Protection in Electronic Commerce, Etc.” (hereinafter referred to as the “E-Commerce Act”) to regulate online deceptive practices (commonly referred to as “dark patterns”) from July 18 to August 27, to coincide with the enforcement of the amended E-Commerce Act (effective February 14, 2025).
The E-Commerce Act, amended on February 15 this year, introduces regulations on six types of online dark patterns, which have caused significant consumer harm but have been difficult to regulate under the current law, leading to legislative gaps. The amendments include the imposition of corrective measures and fines on businesses that violate the obligations of action and omission related to online dark patterns, and, under certain conditions, the suspension of business (or imposition of penalties).
To ensure the smooth implementation of the amended E-Commerce Act, it was necessary to specify the matters delegated to the Enforcement Decree and Enforcement Rules, establish standards for business suspension and fines for violations related to dark patterns, and address other deficiencies. Therefore, this amendment to the lower laws was prepared.
The amended E-Commerce Act mandates that telecommunications sellers must obtain consumer consent within a period prescribed by Presidential Decree before any increase in the regular payment amount or conversion from free to paid subscription for goods or services, to prevent harm caused by consumers not properly recognizing these changes. It also requires sellers to notify consumers of the conditions and methods for canceling or terminating the subscription.
Accordingly, the amendment to the Enforcement Decree stipulates that the pre-notification period for consumer consent before an increase in regular payment amount or conversion to a paid subscription is 30 days and 14 days, respectively.
The amended E-Commerce Act also prohibits acts that interfere with consumers' free decision-making, such as repeatedly prompting changes to already selected or decided matters via pop-up windows. However, if consumers are given the option to avoid such prompts for a period prescribed by Presidential Decree, they are excluded from this prohibition.
The amendment to the Enforcement Decree specifies that if consumers are given the option not to receive such prompts for at least 7 days, this is considered an exception to the prohibition on repeated interference.
The amended E-Commerce Act prohibits displaying or advertising only part of the total amount that consumers must pay to purchase or use goods or services on the first screen of an online store without a valid reason, despite the ability to inform consumers of the total amount. However, if there is a valid reason for not displaying the total amount and this reason is communicated to consumers in accordance with the Prime Ministerial Decree, this is considered an exception.
The amendment to the Enforcement Rules removes the valid reason for not displaying the total amount and adds that if the price of additional items can vary based on consumer choice, this must be communicated on the first screen where the price is displayed or advertised.
The amended E-Commerce Act includes provisions for imposing corrective measures and fines up to 5 million won on businesses that violate obligations related to online dark patterns, and, under certain conditions, the suspension of business for up to one year (or imposition of penalties). There was a need to establish specific standards for business suspension and fines.
Accordingly, the amendment to the Enforcement Decree adds six types of dark pattern-related violations to the list of actions subject to business suspension and fines, and establishes standards for the duration of business suspension and amount of fines based on the number of violations.
Additionally, regarding personal information protection, the amendment introduces a provision that allows the disclosure procedure for high-complaint online shopping malls to be delegated to public notice and aligns the administrative information checked by officials during the reporting or change of telecommunications sales with actual practice.
During the legislative notice period (July 18, 2024 ~ August 27, 2024), the FTC plans to collect sufficient opinions from stakeholders and related departments, and complete the amendment process in the second half of the year after undergoing the relevant legislative procedures such as review by the Ministry of Government Legislation.