Photo = Fair Trade Commission

 

 

[Alpha Biz= Reporter Kim Jisun] The Korea Fair Trade Commission (KFTC) has initiated sanctions against online platforms such as Coupang, Market Kurly, and Naver, citing allegations of obstructing mid-term cancellations by paid membership subscribers.

According to industry sources on December 2, the KFTC recently issued a review report, equivalent to a prosecution indictment, addressing potential violations of the e-Commerce Act by these platforms.

The primary concern involves the platforms' failure to refund unused portions of subscription fees when consumers canceled their paid services mid-term.

For example, Coupang’s Wow Membership does not provide prorated refunds for mid-term cancellations. Subscribers can only receive a refund if they have no usage history within the first month, but even minor usage voids refund eligibility.

Similarly, Market Kurly and Naver allow full refunds only if users withdraw within seven days of the subscription date and have no usage history during that period.

The KFTC has deemed such practices a breach of the e-Commerce Act and has proceeded with disciplinary measures. Earlier in May, the KFTC conducted on-site investigations into Coupang, Market Kurly, and Naver. In August, it also issued review reports to online streaming platforms like Netflix, Wavve, and Watcha, as well as music services such as Bugs and Spotify, for similar issues.

 

 

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