SEOUL, September 16 (AJP) - South Korea's e-commerce giant Coupang has rejected a proposal by the country's consumer watchdog to compensate customers affected by a massive data breach last year.
According to industry sources on Wednesday, Coupang notified the Consumer Dispute Settlement Commission under the Korea Consumer Agency last Friday that it would not accept the proposal.
In a reccomdation which is not leggoiung bining, the commission in late July urged that Coupang should pay 100,000 won (US$70) in compensation to each of the 50 consumers who filed a collective action in December last year over the breach, which exposed the sensitive personal information of tens of millions of users.
In a nonbinding recommendation in late July, the commission urged Coupang to pay 100,000 won (US$70) in compensation to each of the 50 consumers who filed a collective action in December last year over the breach, which exposed the sensitive personal information of tens of millions of users.
Coupang said it carefully reviewed the proposal and concluded that it would be difficult to accept. The company said accepting it could require compensation for all affected users including those who did not participate in the collective action, meaning that its total payout could reach about 3.7 trillion won based on the estimated 37.56 million people affected by the breach.
Consumer groups and other activists held a press conference later in the day criticizing Coupang's decision, saying affected customers would seek additional compensation through civil lawsuits.
Coupang suffered a massive data breach in November last year that exposed personal information from about 37.56 million users. The leaked data included names, email addresses, home addresses and sensitive information such as order histories.
AJP Takeaways
- Coupang rejected a nonbinding compensation recommendation from South Korea's Consumer Dispute Settlement Commission to pay 100,000 won (US$70) to each of 50 consumers who filed a collective action over the data breach.
- Accepting the recommendation could have led to a much larger payout, as Coupang said it could be required to compensate all affected users, potentially bringing the total to about 3.7 trillion won based on 37.56 million affected users.
- The November data breach exposed sensitive customer information, including names, email addresses, home addresses and order histories, while consumer groups said affected customers would seek additional compensation through civil lawsuits.
According to industry sources on Wednesday, Coupang notified the Consumer Dispute Settlement Commission under the Korea Consumer Agency last Friday that it would not accept the proposal.
In a reccomdation which is not leggoiung bining, the commission in late July urged that Coupang should pay 100,000 won (US$70) in compensation to each of the 50 consumers who filed a collective action in December last year over the breach, which exposed the sensitive personal information of tens of millions of users.
In a nonbinding recommendation in late July, the commission urged Coupang to pay 100,000 won (US$70) in compensation to each of the 50 consumers who filed a collective action in December last year over the breach, which exposed the sensitive personal information of tens of millions of users.
Coupang said it carefully reviewed the proposal and concluded that it would be difficult to accept. The company said accepting it could require compensation for all affected users including those who did not participate in the collective action, meaning that its total payout could reach about 3.7 trillion won based on the estimated 37.56 million people affected by the breach.
Consumer groups and other activists held a press conference later in the day criticizing Coupang's decision, saying affected customers would seek additional compensation through civil lawsuits.
Coupang suffered a massive data breach in November last year that exposed personal information from about 37.56 million users. The leaked data included names, email addresses, home addresses and sensitive information such as order histories.
AJP Takeaways
- Coupang rejected a nonbinding compensation recommendation from South Korea's Consumer Dispute Settlement Commission to pay 100,000 won (US$70) to each of 50 consumers who filed a collective action over the data breach.
- Accepting the recommendation could have led to a much larger payout, as Coupang said it could be required to compensate all affected users, potentially bringing the total to about 3.7 trillion won based on 37.56 million affected users.
- The November data breach exposed sensitive customer information, including names, email addresses, home addresses and order histories, while consumer groups said affected customers would seek additional compensation through civil lawsuits.
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