The Broadcasting and Communications Commission has initiated disciplinary procedures against Compose Coffee after confirming that the company systematically expired user stamps during the operation of its app service and failed to properly notify users of contract terminations.
On May 21, the commission announced that it had completed its investigation into violations of the Telecommunications Business Act by Compose Coffee, which operates the Compose Coffee app and kiosk services. The commission has issued a corrective action notice to the company.
The investigation revealed that during the app overhaul, Compose Coffee terminated the existing app service and systematically expired the stamps that users had accumulated. These stamps function as points earned with beverage purchases.
The commission also found that the company unilaterally terminated user contracts without adequately informing users of the contract completion, which hindered user interests.
The commission plans to finalize the corrective orders and any potential fines after consulting with the business and undergoing a review and decision-making process.
The commission stated, "We will continuously monitor actions that cause user harm in the telecommunications service sector, which is closely related to the public's daily life, and will respond strictly to any legal violations."
In April of last year, Compose Coffee had previously expired less than ten existing stamps that were individually accumulated at each store during the app overhaul.
* This article has been translated by AI.
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