In the future, online service providers wishing to increase membership subscription fees or convert from free to paid must obtain consumer consent at least 30 days in advance. During the consent process, the conditions or methods for canceling the subscription must be clearly communicated to the consumer.
The Fair Trade Commission announced on the 10th that the amended enforcement decree and enforcement rules of the e-commerce law reflecting six types of online deceptive practices, commonly known as dark patterns, will take effect from the 14th.
Dark pattern behaviors include ▲hidden renewals ▲sequential pricing disclosure ▲pre-selected specific options ▲incorrect hierarchy ▲obstructing cancellation or withdrawal ▲repeated interference.
Hidden renewals refer to attempts to conceal the increase in subscription fees or the conversion from free to paid. Sequential pricing disclosure refers to displaying or advertising only a partial amount rather than the total price of goods without justifiable reasons on the first screen of display or advertisements. Pre-selected specific options occur when an option is pre-selected before the consumer has a chance to choose it in the process of concluding a specific product purchase contract. Incorrect hierarchy refers to actions that entice users to select favorable options for the business by making significant differences in size, shape, or color of specific items. Designing a complex withdrawal procedure to obstruct a consumer's cancellation or withdrawal and repeatedly requiring a consumer to change previously selected decisions through pop-ups is also a type of dark pattern.
The enforcement decree has been amended to require consumer consent to be obtained within 30 days prior to an increase in subscription fees or conversion from free to paid, and to inform the consumer of the conditions and methods for canceling consent.
The Fair Trade Commission, in a legislative notice, again stipulated the period for consumer consent before conversion to paid service as 14 days. However, due to concerns over business burdens and a decrease in consumer welfare resulting from shortened free trial periods during the regulatory review process, the Regulatory Reform Committee recommended extending the period to 30 days, and the Fair Trade Commission accepted and reflected this.
The punishment provisions have also been clarified. The amended e-commerce law allows fines of up to 5 million won and corrective measures for businesses that violate the obligations of online dark pattern actions and omissions, with specific standards for business suspension and fines delegated to the enforcement decree.
The enforcement decree allows for a business suspension of 3 months for a first violation of dark pattern actions, 6 months for a second violation, and 12 months for a third violation. Fines may be imposed at 1 million won for a first violation, 2 million won for a second violation, and 5 million won for a third violation or more.
A Fair Trade Commission official said, "With this amendment to the subordinate regulations of the e-commerce law, regulations on dark patterns will become more concrete and clear, thereby protecting consumers from online deceptive practices."