In the event of consumer damage, legislation is promoted in the direction of ensuring that online platform operators such as Naver, Coupang, 11th Street, and the People of Delivery take responsibility in solidarity with the participating companies.
In addition, if the shopping product search results are displayed in vague criteria such as’Popularity’ and’Ranking’ rather than in the order of number of views and sales volume, a plan to receive sanctions will also be promoted.
Existing law enacted 20 years ago… The amendment focuses on strengthening platform accountability
The Fair Trade Commission announced that it would announce the legislative amendment to the’Act on Consumer Protection in Electronic Commerce, etc.’ by the 14th of next month.
The FTC prepared a revised bill because the e-commerce law enacted in 2002 was designed around the old-style mail-order sales, and therefore has limitations in responding to the changing market conditions.
In particular, we focused on reinforcing the responsibility of online platforms such as portals, open markets, delivery and lodging apps, and SNS that have grown explosively.
The amendment created a mechanism to prevent the practice of handing over all liability for consumer damage to merchants because the online platform is not a party to the contract.
Intentional and negligent consumer damage, platform operators are also liable for joint responsibility
First of all, if an online platform operator inflicts damages on consumers by intention or negligence while performing payments, payments, and refunds, it has been made to take responsibility for compensation in solidarity with the stores.
For example, if after buying something in an open market and requesting a refund due to a defect, but not receiving the refund, the consumer can file a dispute settlement with one of the stores or online platforms or file a lawsuit for damages.
Even if the online platform operator misleads the consumer that he or she is a party to the transaction, it is also liable, including the case of advertising or issuing contracts in their own name rather than the affiliated company while making a brokerage transaction.
An official from the FTC said, “It is more convenient for consumers to settle disputes against the platform rather than for a store company, and for a store company, it is possible to share the responsibility they had with the platform.” I said.
When the product is exposed, ranking information such as the impact of advertising must be revealed.
The amendment also includes content that allows e-commerce operators, including online platforms, to transparently provide information to consumers whether there is an impact of advertising when products are exposed.
In order to prevent consumers from mistaking the product that appears at the top of the search results as pure search results due to advertisements paying for the online platform, the criteria for determining the ranking of search and exposure were indicated.
Instead of vague expressions such as’Popularity’ and’Ranking’, it is necessary to show the ranking of search results with clear expressions such as the number of views and the order of sales volume.
Even in the case of’customized advertisements’, we made sure to indicate whether the advertisement was advertised so that consumers would not mistake it for a popular product and purchase it.
Providing seller information in case of disputes between individuals such as carrot market and middle and high schools
The amendment also prepared measures to protect consumers of C2C platforms such as carrot market and used country.
If a product was purchased on the C2C platform and the seller could not be contacted or refunded, the platform operator had to inform the seller’s identity when the consumer filed a lawsuit.
Fair Trade Commissioner Sung-wook Cho said, “We have reorganized the rules centered on mail-order sales in the past, focusing on non-face-to-face e-commerce transactions, and put emphasis on rationally blocking consumer damage and providing substantial relief.”
In addition, he said, “We also paid attention to providing damage relief and dispute resolution devices that can protect consumer rights and interests while not hindering innovation in the platform field, which is a new industry.”
Chairman Cho also said, “If a legislative legislation to promote consumer rights and interests comes out and is discussed in the National Assembly, there is no reason for the FTC to oppose it.”