Fair Trade Commission Investigates Legality of Coupang's Complicated Withdrawal Process... "Correction First, Sanctions Later"
"No Liability for Third-Party Illegal Server Access"
Fair Trade Commission Also Investigates Controversial Terms and Conditions
The Korea Fair Trade Commission has launched an investigation into Coupang's complicated membership withdrawal process following a massive leak of user information.
According to officials from the Fair Trade Commission on December 8, the commission has requested Coupang to submit measures to improve the withdrawal procedure so that members can easily leave the platform.
Currently, to withdraw from Coupang, users must go through multiple steps such as verifying personal information, entering their password, clicking the membership withdrawal button, and re-entering their password. This has led to criticism that the process constitutes a so-called "dark pattern."
The Fair Trade Commission has recently begun investigating whether Coupang's complicated withdrawal process violates the Act on Consumer Protection in Electronic Commerce, among other relevant laws.
Since it may take several months for sanctions to be imposed after the investigation, the commission intends to have Coupang revise its withdrawal process first.
The Fair Trade Commission is also reviewing Coupang's terms and conditions. After the recent data breach, it was revealed that Coupang added a clause to Article 38, Paragraph 7 of its terms of use last year, stating that the company is not liable for any damages arising from any illegal third-party access to or illegal use of its servers. This has sparked controversy, and the commission is examining whether it violates the Act on the Regulation of Terms and Conditions.
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A commission official stated, "We are conducting a comprehensive investigation into possible violations of the Electronic Commerce Act or the Act on the Regulation of Terms and Conditions, and Coupang will be required to make corrections first to minimize consumer harm. Separately, if any violations are confirmed, sanctions will be imposed in the future."
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