"Promised to Protect Phones but Charged Fees"...KCC Improves 'User Deception' in Value-Added Services

KCC Approves at Full Meeting on 6th
Unknowingly Subscribed to 'Popup Ads'
Recommends Immediate SMS Notification Upon Subscription
Easy Refunds If No Usage History

[Asia Economy Reporter Cha Min-young] "Phone protection service, login protection service, Anshim Keeper... When did I sign up for these?"

It is expected that user damages caused by unknowingly subscribing to affiliated value-added services of mobile carriers and paying usage fees will decrease in the future. If there is no usage history, a refund of the fees will be possible, and if there is no usage history for more than 7 months, the service provider will not be able to charge fees.

The Korea Communications Commission (KCC) announced on the 6th that it held a plenary meeting and approved a report agenda containing these details.

The KCC stated that after inspecting the subscription, usage procedures, cancellation, and refund procedures of 11 affiliated paid value-added service providers of the three major telecom companies from January to February, many cases of user damage and inconvenience were found. For example, some value-added services, including 2 affiliated with SK Telecom and 11 affiliated with LG Uplus, could not be canceled through the telecom companies' customer centers or mobile applications (apps).

However, the KCC's position is that since paid services are generally indicated at the subscription stage and users are notified via text messages or billing statements after subscription completion, it is difficult to consider this a clear violation of prohibited acts.

The KCC's corrective recommendation includes reducing popup ads that cause user confusion from the subscription stage, and requiring not only value-added service providers but also telecom companies (customer centers, websites, apps) to provide cancellation functions. The affiliated paid value-added services of the three major telecom companies must notify important matters via text messages when subscribing and canceling. Users can request refunds if there is no usage history, and service providers cannot charge fees after 7 months if there is no usage performance. The three telecom companies completed system improvements accordingly by the end of June.

The standing commissioners commonly expressed the opinion that continuous monitoring is necessary from the perspective of user protection. Commissioner Kim Hyo-jae said, "We must conduct thorough inspections regularly and prepare improvement measures so that users do not experience inconvenience." Vice Chairman Ahn Hyung-hwan urged, "Although it is difficult to consider this a clear prohibited act, unfair financial gains are no different from online phishing. Please pay attention to confirming future improvements and conducting actual condition inspections in addition to corrective recommendations."

Meanwhile, the KCC will encourage media companies causing user damage through indiscriminate floating ads to improve through education and publicity. As a result of the first monitoring inspection of floating ad deletion restriction acts, violations were confirmed in 20 out of 101 businesses. The KCC announced that it will conduct administrative guidance and education to induce compliance with laws and regulations.

This content was produced with the assistance of AI translation services.