Meta, which operates 'Facebook' and 'Instagram,' has received a corrective order from the Fair Trade Commission for violating consumer protection obligations under the Electronic Commerce Act. This is the first time a social networking service (SNS) platform has faced sanctions for violating e-commerce laws.
The Fair Trade Commission noted on the 2nd that it imposed fines of 6 million won along with a corrective order on Meta Platforms Inc. (hereafter 'Meta') for failing to fulfill its consumer protection responsibilities.
According to the Fair Trade Commission, even though many users sell products through its platform, Meta did not properly implement consumer protection measures as required by the Electronic Commerce Act, including ▲ verification of the business's identity information ▲ guidance and recommendations on obligation fulfillment ▲ establishment of consumer damage remedy procedures ▲ reflection of terms and conditions.
The Electronic Commerce Act states that providers of electronic bulletin board services have an obligation to prevent consumer harm related to transactions conducted on their platforms. It specifies measures such as verification of seller identity, operation of damage remedy agency procedures, and regulations of terms and conditions. However, it has been found that Meta did not comply with these obligations.
Specifically, Meta did not inform business accounts that have entered into paid advertising contracts or influencers who repeatedly perform group purchases about legal compliance, and it did not establish procedures for consumer redress in case of disputes. Additionally, relevant information was not included in the terms of service, and there was a lack of seller identity verification measures.
The Fair Trade Commission concluded that such actions violated the Electronic Commerce Act, issuing a corrective order to Meta while imposing fines of 6 million won.
The corrective order included guidance on legal compliance for relevant businesses, establishment of damage remedy procedures, revision of terms and conditions, and implementation of identity verification procedures. Compliance must be completed within 180 days from the date of the order. In particular, the scope of influencers and detailed compliance measures must be finalized within 90 days in consultation with the Fair Trade Commission.
This action marks the first case in which the Fair Trade Commission has determined a violation of the law since the introduction of accountability for providers of electronic bulletin board services following the amendment of the Electronic Commerce Act in 2016. The Fair Trade Commission explained that it is significant in establishing a legal standard that SNS platforms, which have evolved beyond simple communication tools to become distribution channels, must bear consumer protection responsibilities.
The Fair Trade Commission stated, 'We will continue to monitor to prevent consumer harm in electronic commerce through SNS platforms and will respond strictly to any violations of the law.'