[Alpha Biz=(Chicago) Reporter Kim Jisun] Kakao, which did not fully inform consumers that it was possible to apply for "submission" while selling online music services, will be subject to sanctions by the Fair Trade Commission. Kakao immediately protested, saying, "It is difficult to understand the sanctions."

The FTC said on the 21st that it will impose a correction order and a fine of 98 million won for Kakao's violation of the e-commerce law.

According to the Korea Fair Trade Commission, Kakao sold regular payment-type services through applications such as Melon and Kakao Talk between May 2017 and May 2021, and handled them as "general cancellation" en masse when consumers applied for termination. The Fair Trade Commission decided to impose sanctions on Kakao, believing that such an act constitutes an act of informing false information or trading with consumers using deceptive methods.

Kakao Entertainment, the operator of Melon, is somewhat unfair to the FTC's sanctions. Kakao Enter explained, "Even before the FTC investigation, Melon had sufficiently informed and notified the termination in the 'web FAQ' or 'precautions before payment', and supported the termination through the termination button of the web (PC version) and the customer center."

In fact, there was no empirical evidence that the customer, who wanted an early termination rather than general termination, had an easy termination through the web and the customer center, which led to general termination because of the case. The company added, "We have clearly changed the terms related to the termination application in the process of reviewing the case, and the function of termination has been completed in all sales channels by July 2021."

Melon was serviced by Kakao in the past, but has been serviced by Kakao Entertainment since September 2021.

 

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