Fair Trade Commission Conducts On-Site Investigation of Coupang Over 'Obstructed Cancellation and Exemption Clauses' Controversy

Yonhap News Agency

The Korea Fair Trade Commission has launched an on-site investigation into allegations that Coupang obstructed membership cancellations and included unfair terms in its contracts.

According to industry sources on December 10, the Fair Trade Commission dispatched investigators to Coupang's headquarters in Songpa-gu, Seoul, to conduct an on-site investigation. The investigators brought official documents stating that the purpose was to check for violations of the Electronic Commerce Act and the Act on Regulation of Terms and Conditions, and they are currently securing relevant documents and materials at the company's main office.

This investigation aims to determine whether Coupang's complicated membership cancellation procedures and the company's exemption clauses violate relevant laws.

The Fair Trade Commission is focusing on whether Coupang hindered consumers' right to withdraw by requiring six steps for membership cancellation-including re-entering a password and repeated surveys-and by visually emphasizing the 'Keep' button over the 'Cancel' button, a so-called dark pattern.

In addition, the commission is also examining whether Article 38, Paragraph 7 of Coupang's terms of service-which states that the company is not liable for damages caused by illegal access by third parties-constitutes an invalid clause under the Act on Regulation of Terms and Conditions.

A representative from the Fair Trade Commission stated, "We cannot provide specific details regarding the ongoing investigation."

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