On February 14, 2025, an amendment to the Act on the Consumer Protection in Electronic Commerce (the “E-Commerce Act”), which strengthens regulations on dark patterns, went into effect, along with related amendments to the Enforcement Decree and Enforcement Rules of the E-Commerce Act (the “Enforcement Regulations”).
In particular, the amended Enforcement Regulations (i) specify obligations and prohibitions regarding dark patterns as stipulated under the E-Commerce Act, and (ii) include specified criteria for imposing business suspensions and administrative fines for non-compliance with these obligations.
The amendments to the Enforcement Regulations aim to reinforce consumer protection in the online platform and e-commerce sectors by clarifying the regulations on dark patterns.
The key details of the amended Enforcement Regulations are as follows:
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1. |
Specification of Obligations Regarding Dark Patterns Under E-Commerce Act |
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Obligations/Prohibitions Under Amended E-Commerce Act |
Relevant Details in Amended Enforcement Regulations |
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Hidden renewals: E-commerce providers are required to obtain prior consent from consumers when increasing a subscription fee or converting a free service to a paid service. (Article 13 (6) of the amended E-Commerce Act) |
Specification of consent period: Consumer consent must be obtained at least 30 days prior to any increase in a subscription fee or conversion of a free service to a paid service. (Article 20-2 of the amended Enforcement Decree) |
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Gradual disclosure of costs: E-commerce providers are prohibited from displaying or advertising only a portion of the total price of goods without justifiable grounds. (Article 21-2 (1) 1 of the amended E-Commerce Act) |
Exception: In cases where the total amount to be paid is difficult to list/advertise, the reasons must be disclosed on the first screen that displays the price information. The disclosure should specify the fees and items excluded from the initially advertised price, along with the reasons for their exclusion (i.e., why it is difficult to list the total amount at the outset). However, on pages with limited space, providing the justifiable grounds via a direct link to a pop-up page is allowed. (Article 11-4 of the amended Enforcement Rules) |
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Repeated interference: E-commerce providers are prohibited from repeatedly requesting that consumers change their choices (e.g., through pop-up windows). (Article 21-2 (1) 5 of the amended E-Commerce Act) |
Exception: If consumers are given the option to opt out of receiving requests to change decisions that they have already made for at least seven days, these requests will be excluded from the scope of repeated interference. (Article 27-2 of the amended Enforcement Decree) |
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2. |
Criteria for Imposing Business Suspension and Administrative Fines |
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First Violation |
Second Violation |
Third Violation |
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Business Suspension |
3 months |
6 months |
12 months |
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Administrative Fine |
KRW 1 million |
KRW 2 million |
KRW 5 million |
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3. |
Implications |
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Hidden renewals: To ensure that consumer consent is obtained at least 30 days before a scheduled increase in subscription fees or the conversion of a free service to a paid service, e-commerce providers must allocate sufficient time to complete the process.
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Gradual disclosure of costs: Regarding the wording and method of disclosing justifiable grounds for the gradual disclosure of costs, e-commerce providers may refer to the samples shown below, excerpted from the Korea Fair Trade Commission’s (the “KFTC”) press release dated February 10, 2025, which are related to the costs for installing air conditioners.
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Cases With No Spatial Constraints |
Cases With Spatial Constraints (Using Pop-Up Window) |
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Repeated interference: Cases where consumers have opted to not receive any requests to change their decisions for at least seven days will be excluded from repeated interference. Therefore, e-commerce providers should consider establishing a process that offers consumers options through a pop-up window, including a message such as “do not show again for [seven] days,” ensuring that the period lasts at least seven days.
The KFTC has already imposed sanctions for violating the E-Commerce Act on the following entities: (i) five over-the-top (“OTT”) service providers for requiring consumers to go through cumbersome procedures to cancel contracts, (ii) an online retailer for labeling and advertising products at a discounted price even though it was unable to supply them, and (iii) an accommodation booking platform operator for failing to disclose that it displayed certain accommodations at the top of its search results page in return for advertising fees.
The KFTC included its commitment to monitor and prevent dark patterns in its Annual Enforcement Plan for 2025. In addition, on February 13, 2025, it published a Q&A document regarding regulations on dark patterns to provide guidance to market participants on the enforcement of the amended Enforcement Regulations. Such proactive efforts to regulate dark patterns as a means of protecting consumers will likely continue under the new administration.
Accordingly, companies should carefully follow regulatory developments regarding dark patterns and take adequate precautionary measures.
Related Topics
#Dark Patterns #E-Commerce Act #Antirust & Competition #2025 Issue 2 #Newsletter
