The criteria for disclosing online shopping malls where consumer complaints are repeatedly filed over undelivered products or refused refunds will be clarified. Going forward, if 10 or more consumer damage complaints are received in a month, they will be subject to disclosure.
The Korea Fair Trade Commission said on the 31st that it established the "Regulation on the Disclosure of Online Shopping Malls with Frequent Complaints" and put it into effect the same day. It revised into a public notice the system of disclosing shopping malls with frequent complaints, which had been operated under internal guidelines.
The Korea Fair Trade Commission (FTC) has disclosed on its website the names, website addresses, and complaint details of online shopping malls where consumer damage complaints concentrated over a certain period due to issues such as undelivered products and delayed or refused refunds. However, there had been no clear rules on the threshold for disclosure or how the opportunity to explain would be provided to businesses.
The criteria for selecting disclosure targets have been made specific by this notice. Online shopping malls for which 10 or more consumer damage relief complaints related to e-commerce were accumulated in a month with the Korea Consumer Agency (KCA) and the Seoul Electronic Commerce Center will be subject to review for disclosure. Simple consultations or dissatisfaction complaints are excluded.
For example, if 10 or more complaints in a month are filed that a shopping mall failed to deliver after payment or refused a refund, the mall may be subject to disclosure. If a certain threshold is exceeded, the shopping mall's name and the complaint details are disclosed on the Korea Fair Trade Commission (FTC) website.
The procedure before disclosure is also set by regulation. The Korea Fair Trade Commission (FTC) will notify in advance the shopping mall operator who may be subject to disclosure and give an opportunity to explain within five business days regarding complaint handling results and future plans. If there is a justifiable reason in the explanation or all consumer damage has been resolved, it may be excluded from disclosure.
Once disclosure is decided, the shopping mall name, domain, a summary of the complaint details, and the fact of the explanation will be posted on the Korea Fair Trade Commission (FTC) website and "Consumer24." The disclosure period is, in principle, six months. However, if complaints are resolved and there is no concern about additional damage, disclosure may be terminated early.
The Korea Fair Trade Commission (FTC) expects that the predictability and procedural transparency of the disclosure system for shopping malls with frequent complaints will improve with this notice. An official at the Korea Fair Trade Commission (FTC) said, "It is meaningful in that it clarifies the standards for disclosing information needed to prevent consumer damage while institutionally guaranteeing the right of businesses to explain."