The Korea Communications Commission (KCC) announced on the 20th that it has begun an investigation into claims that Coupang's online advertising causes user inconvenience. The KCC is confirming whether Coupang's advertisements lead to discomfort, such as the so-called 'kidnap ads,' which redirect users to its homepage or app, and whether this violates the Telecommunications Business Act.
Since November of last year, the KCC has examined the status and execution methods of Coupang's online advertisements and found that Coupang's advertisements are forcibly switched without user consent, and there are inadequacies in the management procedures for this. Additionally, the KCC plans to investigate the issue of Coupang's not supporting individual withdrawals from subsidiary services like Coupang Eats and Coupang Play, citing the integrated account system.
The KCC is confirming whether Coupang's actions correspond to 'restriction of user termination rights' and plans to take strict measures, such as imposing penalty surcharges or corrective orders, in accordance with the law.
A Coupang spokesperson noted, 'We will continue to take strict measures against fraudulent advertisements, including suspending revenue payments and account withdrawals, while cooperating with the KCC to devise eradication strategies.' The spokesperson also explained that, regarding the non-application of partial withdrawals from Coupang Eats, an explanation has already been completed with another agency, and the company will do its best to protect users during the KCC investigation.