Coupang, Naver and others agreed to follow rules to prevent online bait-and-switch tactics ("dark patterns"), such as notifying consumers before paid conversion after a free membership trial ends starting on the 1st.
The Fair Trade Commission said on the 1st that it reviewed and approved the "self-regulatory code on operating online interfaces," prepared by the Korea Online Shopping Association to prevent dark patterns. Twenty-eight companies, including association members Coupang, Naver, Kakao, Musinsa, Kurly, and Karrot Market, participated, and it takes effect starting on the 1st of this month.
Under the agreement, online marketplace operators must obtain consumers' consent 30 days before membership services that were provided free as a promotion switch to paid recurring billing. They must also inform consumers how to cancel the conversion.
If the free membership promotion period is less than 30 days, the process of obtaining consent and giving notice for the paid switch may proceed from the first day the free membership is provided. When obtaining consent for the paid conversion, operators must present selection boxes (checkboxes) such as "agree," "disagree," and "agree later (see again in 7 days)" so consumers are not misled.
Online marketplace operators must also inform consumers of the total amount that must be paid on the first screen that shows the price of a good. Until now, lodging products such as hotels often did not display service fees and taxes on the first screen, leaving room for consumers to mistake them for cheaper options.
The association decided to establish a self-compliance council, composed of business association executives, law professors, and employees of consumer organizations, to check compliance with the code. The council plans to publish the results of its checks and records of improvements or provide them to the Korea Consumer Agency (KCA).
The Fair Trade Commission said, "If conduct self-checked and corrected under the self-regulatory code is later deemed a violation related to dark patterns, absent special circumstances we will provide an opportunity for voluntary correction through a corrective recommendation before taking corrective action."