Bought trusting product reviews... SNS shopping mall showing only positive reviews on top faces Fair Trade Commission sanctions

Administrative Order and Fine of 33 Million Won Imposed

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 21st that it has decided to impose corrective orders and a total fine of 33 million KRW on seven SNS-based shopping mall operators for violations of the Act on Consumer Protection in Electronic Commerce.

According to the Fair Trade Commission, Bugun FNC and Haneulhaneul operated review boards where customer reviews appeared to be sorted by consumers' selection criteria such as latest, recommended, or rating order. However, in reality, they used board management programs to display only positive reviews at the top of the board, while reviews containing complaints were shown only at the bottom.

The Commission judged that the act of arbitrarily determining the order of review postings or product sales rankings and exposing them to consumers violates Article 21, Paragraph 1, Subparagraph 1 of the Electronic Commerce Act, as it may cause consumers intending to purchase products to mistakenly believe that the products have higher consumer approval than is actually the case.

Haneulhaneul, 6Project, Glender, OnTheFlow, LookAtMin, and LinneDeMonde, six operators in total, obstructed consumers' withdrawal of subscription by arbitrarily notifying withdrawal criteria despite the statutory period for withdrawal being recognized under the Electronic Commerce Act. This act of misleading consumers about the withdrawal regulations, which allow withdrawal within seven days from the date of receipt, constitutes an obstruction of withdrawal and violates Article 21, Paragraph 1, Subparagraph 1 of the Electronic Commerce Act.

A Fair Trade Commission official stated, "This action penalizes violations of the Electronic Commerce Act by shopping malls operated and promoted by influencers with significant influence on SNS," adding, "It is expected to raise awareness across the shopping mall industry based on SNS, enhance legal compliance, and contribute to preventing consumer damage."

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