From now on, telecom companies will face increased liability for data breaches occurring over unencrypted wireless internet. Additionally, provisions that exempt telecom operators from responsibility in cases where users share any fault during service disruptions will be revised.
The Fair Trade Commission announced on August 6 that it has reviewed the service terms of the three major telecom companies—SK Telecom, KT, and LG Uplus—and corrected four types of unfair clauses: exemptions for data breach incidents, shifting responsibility for user IDs and passwords, limitations on compensation for damages, and provisions regarding implied consent.
This review of service terms was prompted by growing public concern over the companies' information security systems following a series of data breaches.
First, the exemption clause for telecom companies regarding data breach incidents has been revised. Previously, the three telecom companies had provisions that exempted them from liability for data leaks and incidents caused by unencrypted wireless connections (Wi-Fi) or hacking of private telephone exchange systems, regardless of the company's negligence. The Fair Trade Commission has mandated that liability be shared based on the company's intent or negligence in the event of an incident.
The clause that shifted responsibility for user IDs and passwords has also been amended. In the case of LG Uplus, issues arising from unauthorized use of IDs and passwords were entirely attributed to users, with the company only liable in cases of intent or gross negligence. The Fair Trade Commission has expanded the scope of liability to include damages caused by negligence, addressing the unfairness of this clause.
Furthermore, the provisions limiting compensation for damages due to service disruptions have been revised. The three telecom companies had previously exempted themselves from liability without considering their own negligence, simply because customers were deemed to have some fault. The Fair Trade Commission has clarified that these should be treated as grounds for reduction of liability rather than complete exemption.
The clause regarding implied consent, which considered customers to have agreed to changes if they did not raise objections within a certain period after contract amendments or terminations, has also been improved. Now, this clause will only be effective if customers are clearly informed in advance that failure to express their intent within a specified timeframe will be considered as agreement to the changes.
A Fair Trade Commission official stated, "This action strengthens the security and management responsibilities of telecom operators by reviewing the terms of service closely related to the daily lives of citizens. We will continue to monitor unfair terms to protect consumer rights and ensure fair trading practices."
The Fair Trade Commission announced on August 6 that it has reviewed the service terms of the three major telecom companies—SK Telecom, KT, and LG Uplus—and corrected four types of unfair clauses: exemptions for data breach incidents, shifting responsibility for user IDs and passwords, limitations on compensation for damages, and provisions regarding implied consent.
This review of service terms was prompted by growing public concern over the companies' information security systems following a series of data breaches.
First, the exemption clause for telecom companies regarding data breach incidents has been revised. Previously, the three telecom companies had provisions that exempted them from liability for data leaks and incidents caused by unencrypted wireless connections (Wi-Fi) or hacking of private telephone exchange systems, regardless of the company's negligence. The Fair Trade Commission has mandated that liability be shared based on the company's intent or negligence in the event of an incident.
The clause that shifted responsibility for user IDs and passwords has also been amended. In the case of LG Uplus, issues arising from unauthorized use of IDs and passwords were entirely attributed to users, with the company only liable in cases of intent or gross negligence. The Fair Trade Commission has expanded the scope of liability to include damages caused by negligence, addressing the unfairness of this clause.
Furthermore, the provisions limiting compensation for damages due to service disruptions have been revised. The three telecom companies had previously exempted themselves from liability without considering their own negligence, simply because customers were deemed to have some fault. The Fair Trade Commission has clarified that these should be treated as grounds for reduction of liability rather than complete exemption.
The clause regarding implied consent, which considered customers to have agreed to changes if they did not raise objections within a certain period after contract amendments or terminations, has also been improved. Now, this clause will only be effective if customers are clearly informed in advance that failure to express their intent within a specified timeframe will be considered as agreement to the changes.
A Fair Trade Commission official stated, "This action strengthens the security and management responsibilities of telecom operators by reviewing the terms of service closely related to the daily lives of citizens. We will continue to monitor unfair terms to protect consumer rights and ensure fair trading practices."
* This article has been translated by AI.
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