On May 3, 2022, the Korea Fair Trade Commission (the "KFTC") announced a proposed amendment (the "Proposed Amendment") to the Notification on Disclosure of Information on Products in Electronic Commerce Transactions, which lists the types of product information and transaction terms and conditions that must be disclosed to consumers in online transactions.
The Proposed Amendment is open to public review and comment until May 23, 2022 and will take effect as of January 1, 2023. Below is a summary of its key provisions.
Methods for Indicating Product Certification Information
With respect to certain product groups (e.g., children’s products, household chemical products, etc.) that require a product certification or approval before being sold or imported, the Proposed Amendment requires online retailers to clearly indicate product certification information, such as certification/approval marks and their reference numbers.
| Relevant excerpts from the Proposed Amendment |
| Ⅱ. General Principles 6. When specifying the KC certification information, which is among the “information on goods/services by product category” that must be disclosed, the KC mark shall be indicated together with the identification code (e.g., certification number, report number). For products to which no separate identification code is assigned, the KC mark or the fact that the product has been certified shall be indicated. For products exempted from the KC certification requirement under applicable laws, such exemption must be indicated so that consumers can clearly recognize it. |
| Ⅳ. Method of Indicating Product Information 2. When specifying KC certification information, which is among the “information on goods/services by product category” that must be disclosed, information on certification or approval shall be clearly indicated in a text size easily recognizable by consumers (a font size equal to or larger than that indicating the product price is recommended); merely stating "refer to product details" or posting photos of certificates, test reports, etc. is not permitted. |
Methods for Indicating Manufacture Date and Expiration Date of Fresh Foods, etc.
With respect to certain product types (e.g., fresh foods) with high inventory turnover, the Proposed Amendment provides clear and flexible ways to indicate the manufacture and expiration dates. This is expected to provide clearer guidance on business operators and allow consumers to clearly check the relevant information, such as expiration date.
| Relevant excerpts from the Proposed Amendment | |
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Ⅱ. General Principles
4. C. For products with high inventory turnover, such as fresh foods, the manufacture date, expiration date, use-by date, best-before date and consumption date shall each be calculated and indicated based on the date of order, the date of shipment, etc.
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Additional Product Information Disclosure Requirements and Guidelines on Labeling
With respect to DIY products, video appliances, automotive products, agricultural, livestock and fishery products, processed foods, and household chemicals, the Proposed Amendment strengthens mandatory labeling requirements. The Proposed Amendment also provides specific guidelines on the labeling of certain potentially confusing or unclear information.
| Relevant Sections of the Proposed Amendment |
| Ⅲ. Information on Products, etc. 1. Information on Goods or Services by Item (6) Furniture (e.g., bed, sofa, kitchen countertop, DIY products) 9. For refurbished furniture, information on the reason for re-supply and defective parts must be provided (e.g., a display product with minor scratches on tabletop) (7) Video appliances (e.g., TV) 10. Additional installation cost, if any, must be indicated |
[Labeling Guidelines for Online Distributors (Excerpts of those newly introduced in the Proposed Amendment)]
| Classification | Item | Key Details |
| Product Information | Automotive products | Stipulates that air fresheners, polish coating, washer fluid, antifreeze, etc. for automobiles must be classified as household chemical products |
| Agricultural, livestock and fishery products | Stipulates that domestic beef of 1++ grade must be marked with grade and marbling information | |
| Processed Foods | Specifies the types of foods whose ingredients must be indicated and the indication methods | |
| Foods | Stipulates more detailed guidance on indicating warnings for consumer safety | |
| Household chemical products | Stipulates more detailed guidance on indicating names of the chemicals used in the product | |
| Terms and Conditions | Stipulates detailed guidance on disclosure of information to prevent unfairly restricting consumers' right to cancel the purchase or transferring costs onto consumers | |
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