Guidelines for the Protection of Consumers in E-Commerce
 
Amended on 2015.07.15, Fair Trade Commission Notice No. 2015-7

I. Purposes and organization (omitted)

II. General

1. General compliance items

  The business operator shall comply with the following items in his e-commerce or mail order sales:

  a. In labeling or advertising goods or services, the business operator shall adhere to the relevant statutes, including the Act on Fair Labeling and Advertisement, Notice on Key Labeling and Advertisement (Fair Trade Commission Notice No. 2014-8), and Notice on Designating the Types and Standards of Unfair Labeling or Advertisement (Fair Trade Commission Notice No. 2012-10).

  b. In deciding or announcing the terms and conditions, the business operator shall adhere to the relevant statutes concerning trading terms and conditions, including the Act on Monopoly Regulation and Fair Trading, Act on the Regulation of Terms and Conditions, and Act on Installment Payment Transactions and shall also allow consumers to store the terms and conditions as digital documents or print them out easily for archiving.

  c.  In selling goods or information through e-commerce or mail order sales to minors (“minors” in these guidelines shall follow the definition provided under Subpara 1, Article 2 of the Juvenile Protection Act), the business operator shall take measures to restrict access by minors to or block their purchase of media products harmful to minors or other goods or information to which their access is restricted pursuant to Subpara 3, Article 2  of the Juvenile Protection Act.

2. Definition of concept and scope of responsibility of mail order sales, mail order business operator, and mail order intermediaries

  a. “Mail order sales” under Subpara 2, Article 2 of the Act shall mean sales through the provision by the business operator of information concerning sales and subscription made by consumers [accepted by the business operator] without face-to-face meeting.

(1)     Party A purchased a product by personally visiting Party B’s store after viewing Party B’s product advertisement at an Internet cybermall.

⇒ This case does not fall under mail order sales since the subscription was not made through face-to-face meeting, even though only the information concerning sales was provided online.

(2)   Business Operator C sold a token (“coupon”) indicating the amount and quantity of food that can be served by Restaurant D at a low price through a cybermall operated by Business Operator C.

⇒ Business Operator C’s operation falls under mail order business since the coupon for goods, etc., is sold by accepting subscription after providing information concerning the coupon without face-to-face meeting.

(3)     Business Operator E provided information concerning goods, etc., sold by an overseas cybermall at his own cybermall and delivered to a consumer the goods, etc., he purchased from the overseas cybermall using money out of the advance payment from the consumer after getting the consumer’s subscription.

⇒ Business Operator E’s operation falls under mail order business since the goods, etc., are sold by accepting subscription after providing information concerning the goods, etc., belonging to an overseas cybermall [without face-to-face meeting].

(4)     Business Operator F provided information concerning his service of delivering goods, etc., sold by an overseas cybermall through his own cybermall and provided a consumer with the service of delivering goods, etc., purchased by the consumer from the overseas cybermall based on the consumer’s subscription.

   ⇒ Business Operator E’s operation falls under mail order business since Business Operator E provides information concerning his service of delivering goods, etc., sold by an overseas cybermall without face-to-face meeting and provides or sells the service by accepting subscription.

  b. Some examples of “those who operate mail order business based on an agreement with a person who operates mail order business” under Subpara 3, Article 2 of the Act are provided as follows:

O               Credit Card Company A provided information concerning the sales of travel packages provided by Travel Agency B using a catalog published in the name of Credit Card Company A for Travel Agency B and carried out sales of travel packages by accepting subscription from customers.

   ⇒ In this case, Credit Card Company A is determined to be a mail order business operator since it performs mail order sales based on an agreement with a mail order business operator (Travel Agency B).

    - On the other hand, when Credit Card Company A only provides information concerning sales of travel packages for Travel Agency B on mailing materials published in the name of Credit Card Company A,

    ⇒ Credit Card Company A is not a mail order business operator (but a mail order sales intermediary).

  c. Some examples of “mail order business operators who act as intermediary between those who are not mail order business operators” under Para 3, Article 3 of the Act are as follows:

O               When the information concerning sales of goods, etc., is provided by Individual B who does not operate a mail order business, and subscription to them is accepted through a cybermall operated by Business Operator A who acts as intermediary for mail order sales,

   ⇒ Business Operator A falls under “mail order business operators who act as intermediary between parties who are not mail order business operators.”

    - On the other hand, when Business Operator C who operates a website providing living information only provides information concerning the sales of goods, etc., by Client B and Client B accepts subscription made directly by consumers on the phone,

   ⇒ Business Operator C does not fall under “mail order business operators who act as intermediary between parties who are not mail order business operators.”

  d. Some examples of “mail order business intermediaries who are mail order business operators” under Para 2, Article 20 of the Act are as follows:

O               When the information is provided concerning the sales of goods, etc., supplied by Mail Order Business Operator B who has appointed Business Operator A to act as intermediary using a cybermall operated by Business Operator A, who is an operator of commercial intermediary services for mail order business by allowing use of a cybermall, and subscription to such goods, etc., is accepted,

   ⇒ Business Operator A who operates the cybermall falls under “mail order business intermediary who is a mail order business operator.”

    - On the other hand, when only the price information concerning goods, etc., supplied by Mail Order Business Operator B is provided by Business Operator C who operates a price comparison site,

   ⇒ Business Operator C who operates a price comparison site does not fall under “mail order business intermediaries who are mail order business operators.”

  e. When a mail order business intermediary agrees that he is not responsible as mail order business operator in selling goods, etc., it is not sufficient in connection with Para 1, Article 20 of the Act for him to obtain the consumer’s signature as a sign of consent by simply including the information in some clauses of his terms and conditions. He shall take the necessary actions so that consumers may sufficiently understand the fact, including explanation provided on an individual basis.

O               Furthermore, when a mail order business intermediary indicates the fact that he is not responsible as a mail order business operator, it is not enough for him to post it at the bottom of his website. He should notify consumers by displaying a popup message on their mobile phone or take other actions so that the consumers may sufficiently understand the payment and other key trading procedures.

  f.         When it is unclear whether a business operator is a mail order business operator or a mail order business intermediary, it should be judged by inclusively considering (i) whether the business operator has entered into an agreement or served a public notice in an easy-to understand manner so that the consumers may understand that he himself is merely a mail order business intermediary, and that the legal responsibility rests with a third-party commissioner, (ii) if the business operator has taken the necessary actions so that the consumers may sufficiently understand that the payment is for a transaction with the party that commissioned him to act as a mail order business intermediary, including indication on the payment screen, and (iii) his accounting method in relation to whether the sales margin or profit from the mail order sales becomes his income directly or if he gets only sales commissions.

  g. When a sales transaction is achieved by moving to another site if a consumer simply clicks a banner displayed on a portal or other sites, the business operator who operates the site where the banner is displayed shall not be a mail order business intermediary since none of the essential parts of a procedure required for mail order business are performed on the site.

O               If the business operator fails to take actions so that the consumers may clearly recognize that the site linked by a banner on a portal site is a different site, and

    - the consumers perceive the site linked by the banner to be a site operated by the portal site, the business operator operating the portal site shall be responsible as mail order business intermediary or operator.

3. Utilization of digital (or electronic) documents

  a. In connection with Para 4, Article 5 of the Act, a business operator engaging in e-commerce while allowing consumers to subscribe to membership or purchase goods, etc., and to agree to the provision or use of the consumer-related information by digital documents shall also allow the consumers to withdraw or modify their subscription, amend, terminate, or cancel their contract, or withdraw or modify their agreement to the provision or use of the information. Digital documents here shall mean any information that can be prepared, transmitted, received, or stored in electronic form on computer systems, including digital forms for subscription or withdrawal of membership, e-mail, and counseling bulletin board of a cybermall.

  b. In connection with Para 5, Article 5 of the Act, a business operator engaging in e-commerce business shall provide various confirmation documents or certificates in digital form when a consumer requests him to do so concerning transactions of goods, etc., such as VAT-related bills, cash receipts, and purchase contracts.

  c. When an e-commerce business operator performs his obligations related to Items a and b above pursuant to Para 7, Article 5 of the Act, the other operators involved in the deployment or operation of the relevant cybermall, such as mail order business intermediaries and hosting service providers, shall assist the e-commerce business operator in taking actions for performing his obligations.

4.  Review of trading records

  The following are the actions that a business operator shall take in connection with the consumer’s review of trading records (including the personal information related to them) under Article 6 of the Act and Para 2, Article 6 of the Enforcement Decree:

  a. When trading is performed through a cybermall, the business operator shall allow the consumers to review or check the trading records on the relevant cybermall.

  b. When the trading was performed by means other than a cybermall, the business operator shall allow the consumers to review and check the trading records easily by phone, fax, or Internet.

  c. The provisions under Items a and b above shall not apply to cases wherein a consumer repeatedly and continually asks to review identical trading records in order to obstruct the business operations.

5. Procedure for the prevention of operational errors and confirmation of subscription

  a. The following are some examples of procedures that a business operator should provide to prevent the consumers from making any operational error or appropriate procedures that a mail order business operator should provide to enable the consumers to check, correct, or withdraw their subscription details, in connection with Article 7 and Article 14 of the Act:

(1)     When trading is performed on a cybermall, the business operator shall allow the consumers to double-check their subscription details on the ordering screen or a popup screen before moving to the payment screen and shall check whether the consumers would like to proceed further with their subscription procedure based on their subscription details.

(2)     In case of TV home shopping or catalog shopping, the business operator shall ask the consumer if he/she would like to continue the subscription procedure based on his/her subscription details by explaining the key details of the subscription when a phone order is received.

  b. When allowing the consumers to check their subscription details or explaining about them, the business operator shall take actions to ensure that the consumers clearly understand the key information using one of the following example methods:

(1)     Method of representing the price of goods, etc., in both Arabic numbers and Korean letters to prevent the consumers’ confusion or error; or

(2)     Method of repeating the price of goods, etc., to the customers who place an order by phone

 6. Securing the reliability of electronic payment

  a. In connection with Para 2, Article 8 of the Act and Article 9 of the Enforcement Decree, when payment is made online using electronic means, the business operator and the online payment service provider need to provide the consumers with a digital payment screen in order to check if their subscription represents their true intention using one of the following examples:

(1)     When a business operator offers goods, etc., that change into paid goods or service requiring monthly fixed automatic payment when their free event period is over, the business operator shall provide the consumers with a digital payment screen prepared by a digital payment service provider, etc., at the time online payment is made for goods or services that switched to paid goods or services so that the consumers can decide whether to agree to the contents, types, price of the goods, etc., and period of provision of services. Note, however, that the business operator may provide the consumers with the digital payment screen at the time the free event starts when the consumers agree to the switching time provided the time of switching to paid service is clearly indicated, since the free event is incidental to a contract for monthly fixed automatic payment.

(2)   When a business operator supplying goods, etc., for which a monthly fixed amount is automatically paid changes the price or amount paid each month, he shall provide the consumers with a digital payment screen prepared by a digital payment service provider, etc., at the time online payment is made at the new price for the goods or services so that the consumers can decide whether to agree to the contents, types, new price of the goods, etc., and period of provision of services.

  b. In connection with Para 3, Article 8 of the Act, when a business operator and a digital payment service provider, etc., notify the consumers of digital payment, they shall immediately do so using e-mail, phone, SMS, or fax. Note, however, that such notification may be skipped if the customer is identified face to face or the consumer's consent has been obtained. Some examples of methods by which the business operators notify the consumers of digital payment are provided below:

(1)     Notification by e-mail or SMS in case of purchase on a cybermall

(2)     When goods, etc., are ordered by phone through TV home shopping or catalog shopping, the business operator may notify the consumers of the details provided under General 6. d. (1) at the time of ordering in addition to the notification on the cybermall.

  c. The consumers subject to the notification under Item b above shall be those who order the goods, etc., when they are notified by the business operator, or those who pay for the goods, etc., when they are notified by the digital payment service provider. Meanwhile, if a payment gateway service operator, etc., does not have information concerning the consumers subject to such notification, the notification may be substituted by the notification by a credit card company, a final payment service provider, or a wired or wireless network service provider.

O               When Party A purchases goods, etc., by accessing a cybermall operated by Business Operator A using Party B’s ID and credit card in Party A’s possession, Business Operator A shall notify Party B while Credit Card Company B shall notify Party A.

  d. In connection with the notification in Item b above, the business operator and the credit card company may notify the related parties by dividing the notified details as follows in order to prevent confusion:

(1)     Details to be announced by the business operator: Essential information related to the purchase, including the price and payment terms of purchased goods

(2)     Details to be announced by the electronic payment service provider: Information related to payment, including the payer, date paid, payment means, amount paid, and installment payment

  e. In connection with Article 5 of the Enforcement Decree of the Act, the business operator and the credit card company shall announce the trading details and service fees of the business operator who supplied goods, etc., in writing, e-mail, or fax when they are required to announce the service fees on a fixed day each month. Note, however, that they shall be deemed to have indicated the details when they notify the consumers while taking actions to allow them to check the details through their website. In such case, they shall accommodate any consumer request for indication using a given method.

7. Collection or abuse of consumer information

  a. In connection with Para 1, Article 11 of the Act, the following are examples of illegal or unfair acts of the business operators to collect or use consumer information in e-commerce or mail order business:

O               Failure to perform promises that a business operator made, i.e.,  he would provide the consumers with three months’ free service and other benefits, after collecting their personal information

  b. In connection with Article 11 of the Act and Article 12 of the Enforcement Decree, the following are examples of actions that the business operator should take in order to let the consumers check unauthorized use of their personal information or to provide them with related trading records when they personally request such:

(1)   The business operator shall implement his procedure to authenticate the user by a method selected by the consumer by providing two or more methods from among mobile phone certification, e-government resident registration number certification service, and public key certificate to prevent the possible abuse of the consumer’s personal information.

(2)   When the consumer requests for the provision of records related to his own trading, the business operator shall provide the relevant records to the consumer himself (or the legal agent if requested by the legal agent of a minor), including the date of trading, target articles, trading amount, other party, and payment service provider, after going through the procedure for authenticating the user.

(3)   When a consumer notifies a business operator that the consumer’s personal information has been used by someone without authorization, the business operator shall inform the consumer of means for easily checking the reception and handling status of the report, including the name of the employee who received the report.

  c. In connection with Article 11 and Article 12 of the Enforcement Decree, the following are some examples of actions that a business operator should take in order to recover the original state of the consumer’s personal information if it has been tampered with through unauthorized use:

O               The business operator shall immediately take actions to recover the original state of the consumer’s personal information if it has been tampered with through unauthorized use, including the consumer’s ID, password, credit card number, landline and mobile phone number, and address.

8. Supply of goods, etc.

  a. Some examples of “actions required for supply” under Para 1, Article 15 of the Act are provided as follows:

(1)     Act of ordering production if made to order

(2)     Act of instructing delivery to a delivery service provider by providing the minimum consumer information required for the delivery

  b. In connection with Para 2, Article 15 of the Act, even if a mail order business operator has issued a refund or taken other necessary actions since he was not able to supply the subscribed goods, he shall not be exempted from responsibility for having induced the consumers using methods such as falsification or exaggeration. Some of the examples are provided below:

O               When a business operator refunds payment claiming he is unable to supply the products after indicating false prices for some products on his site, home shopping, or catalog to induce consumers to subscribe to the products

9. Obstruction to the withdrawal of subscription

  a. In connection with Para 9, Article 18 of the Act, when a consumer withdraws his subscription, the mail order business operator shall claim only the delivery cost for return, not any additional amount for payroll, shipping, packing, and storage expenses incidental to the operation of the cybermall or any withdrawal fee or return penalty (deduction). The following shows some example cases wherein additional amounts have been unfairly claimed in addition to the cost for the return of the relevant goods, etc.:

(1)     When a business operator claims additional amounts for warehouse storage, payroll, etc., incurred for handling the order in addition to the cost for the return of garments purchased from a cybermall operated by the business operator

(2)     A student canceled his language exam application seven days after the application was made to a cybermall operator, but the cybermall operator refunded the examination fee only after deducting a 40% cancellation fee on the grounds that the exam application period has elapsed, even as the operator could still sell the vacated slot since there was still sufficient time

  b. In connection with Subpara 1, Para 1, Article 21 of the Act, the following shows some examples of acts “obstructing the withdrawal of subscription or contract termination by providing false or exaggerated information or using other deceptive means”:

(1)     A cybermall operator misleads consumers by displaying on his cybermall a message that prohibits the return of goods of certain colors or materials or goods offered at discounted prices or refund, including a clause that reads “White shoes or discount-sale goods cannot be returned.”

(2)     A cybermall misleads consumers by arbitrarily shortening the period for subscription withdrawal set forth under the Act, including displaying a clause on his cybermall that reads “Refund is accepted only when defective goods are returned within five days of receipt.”

10. Prohibited acts by business operators

  a. In connection with Subpara 1, Para 1, Article 21 of the Act, the following shows some examples of acts of “inducing consumers or trading by providing false or exaggerated information or using other deceptive means”:

(1)     Cases wherein consumers are induced to make a call by sending an SMS ad message to their mobile phones, including ① failure to indicate “paid service,” ② use of misleading expressions like “We haven’t heard from you as to our earlier message” or ③ deceptive lottery or others using illegal or unfair means

(2)     Cases wherein consumers are induced to call a phone number of or visit a cybermall by link using deceptive means, including having consumers unfairly connect to the phone number or site when consumers delete a cybermall ad message or click cancellation or refusal button while sending ad messages to consumers’ mobile phones or displaying ad messages

(3)     Cases wherein the consumers are induced to buy an expensive PC by advertising that the business operator provides an opportunity to buy an expensive PC at a very low price by claiming that a business would pay the monthly installment payment in proportion to the number of times of viewing a banner ad on the Internet, when the business actually discontinues the payment one or two months later

(4)     Cases wherein the business operator misleads consumers to believe that they can purchase certain goods as long as they order by falsely advertising that the goods are offered at a 50% discount without indicating that the quantity is limited

(5)     Cases wherein a cybermall operator has his employees or consumers sponsored by the cybermall delete negative user comments in connection with the quality or delivery of goods, etc., or upload positive feedback on the business operator

(6)     Cases wherein the business operator misleads consumers to believe that certain goods, etc., are recommendable based on “reasonable assessment” by introducing the goods, etc., under the title “best, recommended, expected, or hot topic” without informing the consumers that the business operator received ad fees [for such false promotion]

(7)     In selling travel packages combining hotel, meals, and leisure activities, a cybermall business operator misleads consumers to believe that the combined package is cheaper than the actual price by falsely displaying on his cybermall screen showing key information of related packages the price for another package that covers only part of the combined package, as if it were the price for the combined package

(8)      Cases wherein those employed by a business operator mislead consumers to believe that certain goods, etc., offered by the business are bestsellers by falsely indicating an unduly exaggerated number of buyers of the goods, etc., by purchasing and then canceling their purchase of the goods, etc., in large volumes

  b. In connection with Subpara 3, Para 1, Article 21 of the Act, the following shows some examples of “acts causing damage to consumers by failing to address the shortage of personnel or facility required for the settlement of disputes or complaints for a considerable period”:

(1)     Cases wherein the business operator refuses phone calls by having consumers file or settle their complaints only by e-mail or fax even though they wish to receive calls since the business provides only insufficient e-mail or fax responses concerning consumer complaints

(2)     Cases wherein the business operator installs a technical device that disables consumers’ call due to the limited number of counselors or discourages customers to talk to counselors by forcing them to go through multiple steps through ARS

(3)     Cases wherein the business operator fails to make return calls within three business days even though the consumers left their phone number based on the automatic taped instructions for requesting callback since they could not contact the business operator by phone; note, however, that this shall not apply to cases wherein return calls are inevitably delayed because the consumer left a wrong number or he was not available to receive calls from the business operator

(4)     Cases wherein the business operator indicates a false e-mail address or blocks his e-mail-receiving server to disable consumers’ sending of e-mails

  c. In connection with Subpara 4, Para 1, Article 21 of the Act, the following shows examples of prohibited acts by business operators, including arbitrary shipment of goods, etc., even though the consumer has not made a subscription, or claiming payment for goods, etc., different from those subscribed to:

O               Cases wherein the business operator arbitrarily ships goods, etc., and receives payment by using the consumer’s credit card even though the consumer did not express intention to purchase the goods, etc., but the consumer gave his credit card number because the business operator said it was necessary to check his credit rating when the consumer was provided by the business operator with information concerning the goods, etc., on the phone

11. Representation on cybermalls

  a. Any business operator indicating a mark or a representation on his cybermall, etc., that he applies the standard terms and conditions approved by the Fair Trade Commission shall not modify the contents or wordings to make the standard terms and conditions disadvantageous to consumers. Terms and conditions that are more disadvantageous to the consumers than the standard terms and conditions shall be void pursuant to Para 9, Article 19-3 of the Act on the Regulation of Terms and Conditions.

  b. Any business operator indicating a mark or a representation shall not mislead consumers to believe that the Fair Trade Commission has endorsed the reliability, transparency, or fairness of the business operator, or that he is a superior cybermall by virtue of such mark or representation; neither shall the business operator use such in other illegal or unfair means.

  c. In connection with the proviso of Para 1, Article 7  of the Enforcement Decree of the Act, the business operator shall take actions to let the consumers link to the initial screen directly when they are required to view the cybermall’s service terms and conditions on a screen linked to the initial screen.

12. Indication of and compensation for saved money

  a. When a business operator operates a scheme of saved money (points, mileage, etc., accrued through membership or purchase of goods, etc., regardless of the terms) on his cybermall, he shall display the usage terms, period, expiry terms, compensation standards, etc., when they are not usable due to reasons attributable to the business in an easy-to-understand manner. The business operator shall also display the details on the screen for the relevant event if the saved money is paid through events, etc.

  b. The business operator shall compensate the consumers based on the terms or conditions presented on his cybermall when consumers are rendered unable to use their saved money because of the closure of the scheme, partial business discontinuance, or merger between businesses. The business operator shall compensate the consumers in cash or in kind equivalent to the monetary value of the currency used on the cybermall if the compensation standards are not announced pursuant to Item a above.

Ⅲ. Recommendations

 1. Withdrawal of subscription

  a. When goods, etc., turn out to be different from their representation or advertisement, or subscription is withdrawn since the business operator has violated the contract, the mail order business operator shall shoulder the shipment expenses at the time of purchase or shall refund it to the consumer if payment has already been made.

  b. When a consumer withdraws his subscription simply based on change of heart, the parties may determine who will pay the shipment expenses at the time of purchase based on an agreement between them, and the business operator shall clearly indicate such in an easy-to-understand manner.

  c. When a business operator offers free call service (080 service, etc.) to receive orders from consumers, he shall take actions so that they can also use the free phone service for their withdrawal of subscription or settlement of disputes. The business operator shall not maliciously delay or neglect calls related to withdrawal of subscription, etc.

  d. When a dispute arises between a mail order business operator and a consumer concerning whether the case is governed by Subpara 3, Para 2, Article 17 (cases wherein the value of goods, etc., becomes remarkably reduced to make their resale impossible because of the lapse of time) when a consumer intends to withdraw subscription after a reservation is made through a cybermall for lodging or travel service business, the business operator may refund an amount not exceeding the deduction standards set forth under the Guidelines for the Settlement of Consumer Disputes. Note, however, that the business operator shall notify the consumers of such deduction in advance and shall include specific causes falling under Subpara 3, Para 2, Article 17 in the advance notice.

 2. Collection of disclosed information and compensation for damages caused by unauthorized use

  a. In connection with Para 1, Article 11, the following shows some examples of ways the business operator collects and uses already disclosed information related to the family or personal life of the consumers:

O               The business operator shall notify the consumers of the details in advance when collecting and using information concerning the family etc., of a specific person from information already disclosed by a profile information service.

  b. In connection with Article 11 of the Act or Article 12 of the Enforcement Decree, the following shows examples of actions that the business operator should take to compensate for damages:

(1)     The business operator shall decide the means of compensation for damages sustained by consumers due to the unauthorized use of their personal information. Note, however, that the business operator shall let the consumers know the damages compensated for by means they select from two or more presented by the business operator, including fax, letter, or e-mail.

(2)   The business operator shall compensate for damages sustained by consumers who performed the procedure above, except in the following cases:

- When the information has been stolen intentionally or due to the serious negligence of the consumer;

- When the consumer’s personal information has been used without authorization since the consumer had provided his personal information to others or entrusted others to use his personal information;

- When the consumer indicates false information on his written request for compensation for damages caused by the unauthorized use; or

- When the consumer provides false information or fails to cooperate even though the business operator requests information to check the damages caused by unauthorized use

(3)   The business operator shall take the necessary actions for compensation within three business days of the date the consumer requests for compensation for damages caused by the unauthorized use of the consumer’s personal information if the items for which the consumer requested compensation are saved money or other items (excluding those cases wherein the business operator is unable to determine the unauthorized use based on information held by him).

3. Restriction of service or fee dispute related to deferred mobile payment service

  a. Wired or wireless telecommunication service operators (business operators who provide phone service or services of providing frequency allocated as set forth under the Telecommunications Service Act) shall take actions for call blocking or restriction of the service based on an advance request by the legal agency when a minor uses deferred mobile payment service (service wherein digital payment is made for goods, etc., with a terminal device used for phone service or other service provided using the frequency allocated as set forth under the Telecommunications Service Act).

  b. In preparation against any objection raised by consumers concerning service fee billed under the deferred mobile payment service, the relevant business operator or wired or wireless telecommunications service operators shall appoint their representative for the settlement of disputes. Wired or wireless telecommunications service operators shall display the details as stipulated under General Provisions 6. e. Business operators shall actively cooperate with consumers to settle disputes with the representative appointed for the settlement of disputes. In such case, business operators shall not be exempted from the punishment set forth under the relevant statutes even if they have cooperated on the settlement of disputes.

  c. When any objection is raised by a consumer concerning the service fee billed under the deferred mobile payment service, the relevant business operator or the online payment service operator shall not collect the relevant amount from the consumer until the related dispute is resolved. In such case, the relevant business operator or the online payment service operator shall neither register the consumer as delinquent nor discontinue the call service on the grounds that the consumer defaulted in the payment of the disputed amount.

4. Representations on cybermalls

  a. To amend the terms and conditions of a cybermall, the business operator shall announce the application date, amended details, and causes on the homepage or pages linked to it at least seven days from the application date. When the amended contract has become disadvantageous to consumers, the business operator shall announce the amendment details and allow a grace period of at least 30 days. In such case, the amendment details shall be indicated in an easy-to-understand manner by comparing the details before and after the amendment.

  b. When indicating on his cybermall that he has been appraised or certified by a certification service provider under Para 1, Article 29  of the Act, the business operator shall provide means by which the consumers can check the name of the appraisal or certification marks, name of the appraiser or certifier, validity, certified areas and scope, etc.

5. Business operators who sell coupons for the provision of goods, etc.

  a. In selling goods, etc., at a discounted price, the business operator shall indicate the details on the cybermall where the sales-related information is provided (previous trading prices, market prices, etc.), including the base price for computing the discount rate, date the discount rate is computed, features of the goods, etc., affecting the base price (full day/daytime/nighttime, during the week or weekend, etc.), and surcharges.

  b. When a business operator has the e-mail address, phone number, or other contact information of consumers while selling coupons for goods, etc., whose validity is limited, the business operator shall urge the consumers to use the coupons within the valid period by informing them of the name of the coupon and its validity by e-mail or SMS message one or more times before the valid period expires.

  c. A business operator selling coupons shall take actions to prevent the supplier of the goods, etc., from discriminating those consumers who purchased coupons from other general consumers.

6. Business operators providing price comparison service

  a. The business operator shall ensure that accurate price comparison information is provided to the consumers by adhering to the following:

(1)   The price comparison information shall be provided to all consumers at the price comparison site by comparing prices based on prices that are equally applied without any special condition (ex. holding of specific credit cards).

(2)   The price comparison information of goods, etc., that can be purchased only when options are added shall be provided based on prices including such options.

(3)   In cases of goods, etc., for which delivery or installation charges vary depending on the area or item, the business operator shall indicate the delivery or installation charges separately in an easy-to-understand manner along with the base price of the goods, etc.

  b. When providing any price comparison information, the business operator shall adhere to the following in order to prevent consumer damages:

(1)   The business operator shall explain to the consumers information concerning the exposure standards, including those related to price, sales volume, and released date, in an easy-to-understand manner.

(2)   The business operator shall take actions to prevent any deceptive deal inducing consumers unfairly by linking the pages of his price comparison information to other pages where goods, etc., different from the goods, etc., originally selected by the consumer in terms of price, size, or quantity are displayed, including cases wherein the consumers are linked to pages offering goods, etc., that are more expensive despite being similar when they select goods, etc., using the price comparison site.