The Korea Media and Communications Commission confirmed indications that user benefits were unfairly eliminated during COMPOSE COFFEE's app operation and has begun sanction procedures.
The Korea Media and Communications Commission (KMCC) said on the 21st that it completed a fact-finding probe into COMPOSE COFFEE, a value-added telecommunications operator that runs the COMPOSE COFFEE mobile app and kiosk service, and sent the company a corrective action plan.
The issue identified in the probe was the app overhaul process. COMPOSE COFFEE was found to have wiped out, all at once, the stamps users had accumulated through beverage purchases when it shut down the existing app service. These stamps are a point-type benefit accrued with each coffee purchase.
The Korea Media and Communications Commission (KMCC) also viewed as problematic that COMPOSE COFFEE effectively terminated the user contract without notifying users that the termination had been completed. It determined that eliminating benefits held by users without sufficient guidance constitutes an act that infringed users' interests.
The Korea Media and Communications Commission (KMCC) plans to finalize whether to issue a corrective order and impose a penalty surcharge, and in what amount, after hearing COMPOSE COFFEE's views and undergoing committee deliberation and resolution.