In the future, transactions on consumer-to-consumer (C2C) platforms, such as those for secondhand goods, will only require verification of the seller's phone number and email address. Additionally, penalties for businesses that repeatedly violate e-commerce laws will be significantly increased.
The Fair Trade Commission announced that a revision of the e-commerce law enforcement decree, which includes these changes, has passed the Cabinet meeting. The revised regulations will take effect on July 21.
The main focus of this revision is to enhance consumer protection in response to changes in the e-commerce environment and to strengthen penalties for businesses that violate the law. The scope of personal information that online sellers must verify has been streamlined.
Previously, individual sellers were required to provide five pieces of information (name, date of birth, address, phone number, and email address). However, under the new rules, only the phone number and email address will need to be verified. If the seller's identity has already been confirmed by an identity verification agency, only the phone number will need to be checked. This measure aims to prevent excessive collection and leakage of personal information in C2C transactions.
The criteria for designating domestic agents for foreign businesses have also been clarified. Large foreign companies with annual sales exceeding 1 trillion won or an average of over 1 million domestic users per month must designate a domestic agent, even if they do not have a physical address or office in the country. The domestic agent will monitor the foreign business's compliance with the law and respond to requests for information from the Fair Trade Commission. Regulations regarding the designation of domestic agents will take effect on January 21 of next year, allowing the industry time to prepare.
Businesses will also be required to disclose information related to user reviews. They must publicly display the authority to write reviews, posting duration, rating criteria, and deletion standards on the main page. However, a three-month grace period will be implemented following recommendations from the Regulatory Reform Committee.
Economic sanctions against law-breaking businesses will be significantly strengthened. To deter habitual violations, the criteria for increasing fines will be raised, and the reduction rate will be decreased. If a business has violated the law at least once in the past five years and commits another violation, fines can be increased by up to 50%. For businesses that violate the law four or more times, fines can be increased by up to 100%. Conversely, the maximum reduction for businesses that voluntarily correct violations during investigations will be reduced from 30% to within 10%.
A Fair Trade Commission official stated, "Through this revision, we aim to robustly protect consumer rights in the evolving market environment of C2C transactions and overseas direct purchases. We will hold law-breaking businesses accountable to establish a fair competitive order in the market."
The Fair Trade Commission announced that a revision of the e-commerce law enforcement decree, which includes these changes, has passed the Cabinet meeting. The revised regulations will take effect on July 21.
The main focus of this revision is to enhance consumer protection in response to changes in the e-commerce environment and to strengthen penalties for businesses that violate the law. The scope of personal information that online sellers must verify has been streamlined.
Previously, individual sellers were required to provide five pieces of information (name, date of birth, address, phone number, and email address). However, under the new rules, only the phone number and email address will need to be verified. If the seller's identity has already been confirmed by an identity verification agency, only the phone number will need to be checked. This measure aims to prevent excessive collection and leakage of personal information in C2C transactions.
The criteria for designating domestic agents for foreign businesses have also been clarified. Large foreign companies with annual sales exceeding 1 trillion won or an average of over 1 million domestic users per month must designate a domestic agent, even if they do not have a physical address or office in the country. The domestic agent will monitor the foreign business's compliance with the law and respond to requests for information from the Fair Trade Commission. Regulations regarding the designation of domestic agents will take effect on January 21 of next year, allowing the industry time to prepare.
Businesses will also be required to disclose information related to user reviews. They must publicly display the authority to write reviews, posting duration, rating criteria, and deletion standards on the main page. However, a three-month grace period will be implemented following recommendations from the Regulatory Reform Committee.
Economic sanctions against law-breaking businesses will be significantly strengthened. To deter habitual violations, the criteria for increasing fines will be raised, and the reduction rate will be decreased. If a business has violated the law at least once in the past five years and commits another violation, fines can be increased by up to 50%. For businesses that violate the law four or more times, fines can be increased by up to 100%. Conversely, the maximum reduction for businesses that voluntarily correct violations during investigations will be reduced from 30% to within 10%.
A Fair Trade Commission official stated, "Through this revision, we aim to robustly protect consumer rights in the evolving market environment of C2C transactions and overseas direct purchases. We will hold law-breaking businesses accountable to establish a fair competitive order in the market."
* This article has been translated by AI.
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