Online shopping platforms and applications are now required to make membership cancellation buttons easily accessible, as part of new guidelines aimed at preventing so-called 'dark patterns.' These deceptive practices include hiding cancellation options or displaying only partial product prices before adding extra costs at the payment stage.
On October 6, the Fair Trade Commission (KFTC) released the 'Guidelines for Operating Online Interfaces to Prevent Dark Patterns' to assist businesses in understanding and complying with regulations under the e-commerce law. Dark patterns refer to online interface designs that mislead consumers or exploit their inattention, leading to irrational purchasing decisions.
The KFTC categorized dark patterns into four types: exploitative, misleading, obstructive, and coercive, with a total of 13 specific types. The exploitative category includes 'hidden renewals' and 'sequential pricing disclosure.' If a subscription price increases or a free service transitions to a paid model, businesses must obtain separate consent from consumers within 30 days prior to the change.
Even if the possibility of a paid transition is mentioned in the terms and conditions at the time of contract, separate consent is still required at the actual transition point. However, returning to the original price after a temporary discount during a subscription is not considered a price increase.
Sequential pricing disclosure, which involves showing only part of the price during the product search and adding mandatory costs at the purchase stage, is also prohibited.
In a previous investigation by the KFTC and the Korea Consumer Agency of 1,335 products from four major online shopping malls, it was found that 12.8% of 800 gift sets for the Lunar New Year had inflated regular prices during discount periods. Additionally, 20.2% of 535 time-limited discounted products either maintained their prices or dropped after the promotion ended.
The misleading category includes practices such as pre-selecting specific options, emphasizing certain choices through size or color, false discounts, deceptive recommendations, bait-and-switch advertising, and misleading questions.
Specific criteria were also established for making it difficult for consumers to cancel memberships or terminate contracts. The KFTC recommends placing cancellation and withdrawal buttons in easily accessible areas, such as the login screen or 'My Page,' rather than in less expected sections like 'Edit Personal Information' or 'Security Settings.'
Repeatedly prompting consumers with options they have already declined, known as 'repeated interference,' is also classified as a dark pattern.
This new guideline consolidates and updates the 'Self-Regulation Guidelines for Online Dark Patterns' announced in July 2023 and the 'Q&A on Six Types of Online Dark Pattern Regulations' released in February of the previous year. It also reflects the revised e-commerce consumer protection guidelines from September 2022 and the results of dark pattern monitoring and law enforcement.
However, the guidelines themselves do not have legal binding force. Actual violations will be assessed based on the e-commerce law, its enforcement decrees, and consumer protection guidelines.
The KFTC stated, 'We expect these guidelines to help businesses understand dark pattern regulations and fulfill their obligations. We will closely monitor changes in the online transaction environment and respond strictly to any violations.'
* This article has been translated by AI.
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