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[세종=이데일리 한광범 김상윤 기자] While non-face-to-face transactions are activated due to Corona 19 and the e-commerce (e-commerce) market is rapidly growing, online platform operators in charge of intermediary will also be liable for joint responsibility for damages. From the perspective of consumers, it is expected that damage recovery will be possible quickly. On the other hand, the IT industry is strongly opposing it, saying it is a retrogressive regulation that does not take into account the field situation.
On the 7th, the Fair Trade Commission announced that it has prepared an amendment to the’E-Commerce Consumer Protection Act’ to realize the responsibilities of e-commerce platform operators and to prepare effective consumer damage prevention and remedies, and the legislation will be announced by the 14th of next month.
The core of this amendment is the realization of the responsibilities of intermediary platform operators. Although the influence of the online platform is increasing, the current law designed based on traditional mail-order sales is exempted from liability if it is notified that it is an intermediary.
The amendment allows the platform operators to display specific tasks performed in the transaction process, so that consumers who have had difficulty in responding to damage due to existing limited information can easily identify the position of responsibility. Like Coupang, they were separately labeled and notified to platforms that engage in brokerage transactions or direct purchases.
FTC “Platforms, take responsibility as much as they are involved… There is no possibility of a market contraction”
Based on this, platform operators were also obligated to take responsibility for consumer damage. If the platform operator △ induces consumer misunderstanding as if it were a party to the transaction or △ inflicts damage to the consumer in relation to the work performed in the transaction process, it will be liable for joint responsibility with the affiliated company.
The Fair Trade Commission explains that consumer protection is thickened as the platform is divided over the responsibility for consumer damage compensation, which the existing store companies were alone in. In addition, from the platform’s point of view, the burden is not as great as it is responsible for compensation only in the case of intentional or negligence.
“The purpose of the platform is to have the responsibility proportionally when consumer damage occurs according to the role and involvement of the platform,” said Sung-wook Cho, head of the Fair Trade Commission. “As the platform shares some responsibilities, more consumer damage relief will be achieved.” .
The FTC explained that such a reorganization plan is also an advantage from the point of view of the participating companies. Shin Bong-sam, director of the Fair Trade Commission, pointed out, “In the current structure, even if the platform is faulty, it is a method in which the store company first pays compensation to the consumer and then claims the right to indemnify.”
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The Fair Trade Commission drew a line on the possibility of a contraction of the intermediary platform due to strengthening regulations. Secretary Shin emphasized, “Even if you are liable for solidarity due to your own negligence, brokerage businesses are much less burdened than direct purchases and sales.” In fact, direct purchase is subject to the Large-scale Distribution Business Fairness Act, which is more regulated than the E-Commerce Act.
In addition, regarding the point that the reinforcement of platform responsibility could lead to the transfer of costs to the participating companies, such as a fee increase, he cut off that “compensation for the platform’s negligence cannot be used as a reason for the fee increase.”
For global business operators, he emphasized that it will increase its executive power by designating a domestic representative to play roles such as dispute resolution and document receipt in Korea. However, in the case of pre-regulation, it was admitted that it was difficult to apply some provisions as it could conflict with laws in other countries.
The IT industry is concerned that it could be reverse discrimination against domestic operators again. An official argued that “overseas business operators are not able to properly regulate, but only domestic operators will be forced to invade the domestic market by overseas platforms without proper competition.”
The amendment also forced the search ads to be clearly distinguished. In order to prevent consumers from mistaking advertising products as pure search results and purchasing them, e-commerce companies have differentiated and displayed them. In addition, the main criteria for number of views, sales volume, product price, advertisement cost, etc. that determine the ranking of search and exposure were also indicated.
IT industry “Start-up consumer protection device exterior…” Transfer of responsibility to consumers”
It will also expand consumer protection measures for C2C (individual) trading platforms such as the carrot market, which is growing rapidly in recent years. In the case of disputes such as refusal of refund in C2C transactions, the basis for verifying and providing identity information was also prepared. Even in transactions using SNS platforms such as Instagram, the platform has made it mandatory for the platform to provide an agency for remedy for damages and to provide identification information in case of dispute.
The Fair Trade Commission has greatly eased the requirements for initiating the temporary suspension order system in order to promptly relieve consumer damage. The Temporary Suspension Order System is a system that temporarily suspends product sales or advertisements when there is a concern about damage. A consent voting system is introduced for quick and effective relief from false, exaggerated, and deceptive consumer incentives. Consent settlement is a system in which a case is closed without legal sanctions when a company establishes damage compensation and recurrence prevention measures.
During the legislative notice period, the FTC will collect opinions from stakeholders and relevant ministries, and then submit the amendment to the National Assembly through regulatory and legal review, vice ministers, and state council meetings.
“If the revised bill is passed, consumer damage will be reliably relieved, and online platforms will be able to compete and innovate to receive rational choices from consumers, creating conditions for growth.”
However, the IT industry immediately protested. The Fair Trade Commission demanded a full review, saying that it prepared a one-way amendment without a procedure for collecting opinions. The Korea Internet Enterprises Association and the Korea Startup Forum shared a statement of “a uniform regulation that reverses the times, ignoring the start-ups that have provided preemptive consumer protection devices in various ways, but rather transferring responsibility to consumers.” Criticized.
In particular, regarding the provision to provide personal information in the event of C2C damage, “the identity information of another person acquired by an individual user in the course of a dispute is not automatically destroyed after the transaction is terminated.” “If the personal information is abused for malicious purposes, a good user It could lead to a serious situation that threatens the personal safety of people.”