On November 29, 2024, the Korea Fair Trade Commission (the “KFTC”) announced the results of its “Consumer Protection Obligations Compliance Survey for Domestic and Foreign Platform Operators” (the “Survey”).

This Survey was conducted as a part of the consumer protection measures in relation to overseas online platforms announced by the KFTC in March. It involved written surveys and monitoring of online shopping malls among the top ten platform operators by monthly active users count (eight domestic operators and two overseas operators).

The KFTC specifically focused on the following aspects in the Survey regarding domestic and overseas platform operators:
 

• The KFTC checked whether (i) the platform operators, as cybermall operators/online sales brokerage business operators, diligently provide required notifications to consumers, and (ii) the platform operators implement relevant measures to ensure proper provision of product information to consumers (e.g., prevention of product registration in case of omission of essential product information, improvement procedures through monitoring).

• With regard to certain overseas platform operators, the KFTC pointed out (i) their failure to perform their obligation to file the online retail business report, (ii) difficulty in understanding product information due to translation issues, and (iii) display of only foreign address and phone number as contact information.
   

• The KFTC checked whether platform operators have dedicated personnel and organizations in Korea for consumer dispute resolution.

• The KFTC noted that some platform operators rely on foreign employees using translation tools to respond to consumers, have limited methods for handling complaints, and either fail to comply or do not provide guidance on dispute resolution timelines.
   

• The KFTC examined whether platform operators conduct monitoring of fraud, repeated incorrect deliveries, distribution of hazardous goods, and false advertising, and whether they have response manuals or impose sanctions on instances causing consumer damage.
   

Additionally, the KFTC released the result of their analysis on consumer damage cases related to e-commerce, as well as the survey result of online shopping mall usage and perceptions. The KFTC highlighted the rapidly increasing portion of consumer complaints related to international online transactions, noting that survey results indicated that there are more issues with overseas shopping malls compared to domestic shopping malls in terms of consumer satisfaction and provision of resolution timelines (e.g., overseas online platforms’ shortcomings in consumer damage redress mechanisms).

Based on the Survey, the KFTC plans to review additional legislative measures, including the ongoing initiative to mandate the designation of local agents for overseas business operators, as well as adjustments to penalty levels for violations reflecting the scale of online operators and platform-centric transaction structures. The KFTC also stated that it will conduct an in-depth analysis of the structure and competition status of the e-commerce market through a market survey.

Given the KFTC’s strong commitment to improving consumer protection legislation and taking enforcement actions against online platforms, it is important to pay a close attention to future legislative developments and comply with consumer protection laws.

[Korean Version]