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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Jisun] The Korea Fair Trade Commission (KFTC) has initiated sanction procedures against online video streaming services (OTT) like Netflix, as well as music streaming services, for allegedly obstructing consumers from canceling their subscriptions.
According to industry sources on the 22nd, the KFTC recently sent a review report to OTT platforms such as Netflix, Wavve, and Watcha, as well as music streaming services like Spotify and Bugs, accusing them of violating e-commerce laws. The KFTC's review report is akin to a prosecutor's indictment.
The KFTC has determined that these companies violated consumer rights by either not providing a clear option for mid-term subscription cancellation or by failing to adequately inform consumers of their right to cancel subscriptions.
This case marks the first enforcement action by the KFTC's newly established "Focus Investigation Team," created to conduct swift investigations into cases of significant public interest.
The KFTC plans to review the case in an upcoming committee meeting to determine the sanctions and their severity. However, a KFTC official stated, "We cannot comment on the specifics of the investigation or the details of the case."
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
