'Preventing Recurrence of Timeff Incident'... Online Brokerage Transaction 'Fairness Act' Proposed

Assemblywoman Kim Hyun-jung Proposes 'Act on Fairness in Online Platform Intermediated Transactions'
Checks on Abuse of Dominant Position by Online Platform Operators
Settlement Cycle for Sales Proceeds Set to 14 Days

On the 29th, as the 'unsettled payment issue' of Wemakeprice and Tmon continues, citizens are passing by the Tmon building in Gangnam-gu, Seoul. Photo by Jo Yongjun jun21@

In response to the Tmon and Wemakeprice incidents, a bill has been proposed to curb various abuses of power by online platform service providers, such as withholding payment settlements by exploiting their dominant position.

On the 6th, Kim Hyun-jung, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, introduced the "Act on the Fairness of Online Platform Brokerage Transactions" to prevent the recurrence of the growing damage caused to consumers and sellers by the unsettled payment issues involving Tmon and Wemakeprice.

The bill, spearheaded by Representative Kim, includes provisions to regulate unfair practices by online platform operators, such as discrimination against users, forced use of specific payment methods, restrictions, suspension, or refusal of service provision, shifting the burden of promotional costs, exclusive trading demands, and requests for management information.

In particular, the bill addresses the payment settlement cycle issue that triggered the recent Tmon and Wemakeprice incidents by mandating that settlement payments be made within 14 days from the date the consumer receives the product.

Additionally, the bill includes ▲ disclosure of principles for determining search and arrangement rankings on online platforms ▲ use of a standard online platform brokerage transaction contract ▲ establishment of an online platform brokerage transaction dispute mediation council ▲ implementation of fact-finding investigations by the Fair Trade Commission ▲ and provisions for the Fair Trade Commission’s consent decision system (dispute mediation) and prohibition claim system for infringing acts to protect sellers on the platform.

Representative Kim stated, "The Tmon and Wemakeprice incidents revealed the necessity to put a stop to abusive practices in online platform brokerage transactions," adding, "We will enact the Online Platform Fairness Act as soon as possible to correct unfair contracts and trading practices and enhance transparency in transactions conducted through online platforms."

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