The Korea Media and Communications Commission (KMCC) will significantly expand the scope of its "user participation reporting system," which pays compensation for reporting unfair practices by mobile phone retail stores. Going forward, users can also report cases where mobile phone retailers ran false or exaggerated ads on online platforms, social media (SNS), and KakaoTalk open chat.
According to the industry on the 11th, the Korea Communications Users Protection Association (KCUP), registered with the Korea Media and Communications Commission (KMCC), recently notified retailers nationwide that it "plans to expand the types of cases subject to the user participation reporting system to foster a sound mobile communications distribution environment." The association added, "When operating advertising channels such as online, SNS, and open chat, the use of false or exaggerated expressions is prohibited," and "Retail networks should familiarize themselves with the relevant details and be careful to prevent violations."
The user participation reporting system allows users to directly report illegal or improper practices by retailers that occur during the mobile phone activation process. Excluding budget carriers, subscribers of the three major mobile carriers can file a report within 14 days, including the activation date.
Previously, four types were subject to reporting: using a contract other than the official contract, failing to list or falsely listing subsidies in the contract, improper enrollment in value-added services, and proxy drafting of contracts.
Starting this month, users can also report when the retailer that provided consultation differs from the retailer that actually activated the device, when prior consent forms are not posted online, or when retailers run false or exaggerated ads. In particular, reporting false or exaggerated ads is expected to spur participation in the user participation reporting system. This is because posts online—such as on Naver Cafes and Bands, secondhand trading platforms, and SNS—that falsely or exaggeratedly list activation conditions for subsidies, rate plans, and value-added services will also be subject to reporting.
An association official said, "Cases where a rate plan discount, which is a discounted contract, is disguised and distributed as if it were a device discount are subject to reporting."
The user participation reporting system began a pilot run on Mar. 3. The Korea Media and Communications Commission (KMCC) set up the system to quickly detect illegal or improper practices by retailers in line with the launch of the Samsung Electronics Galaxy S26. If a violation is confirmed, the reporter receives compensation (50,000 won per case, up to 200,000 won per year).
It is similar to the so-called "phone paparazzi" system that was halted in 2021, but the subjects of reporting and the compensation amounts differ. The main target of phone paparazzi reports was acts that violated the Mobile Device Distribution Improvement Act by paying subsidies that exceeded the publicly announced subsidy, and the reward was up to 10 million won.