In response to Coupang's complicated cancellation procedures, the National Assembly has initiated legislation to prohibit obstacles to canceling online services. This issue extends beyond Coupang, prompting industry stakeholders to agree on the intent while emphasizing the need to reflect service-specific characteristics.
According to the National Assembly's legislative information system, 18 lawmakers, including Kim Woo-young of the Democratic Party, proposed an amendment to the Telecommunications Business Act on October 20. The amendment aims to ban practices that make it difficult to find step-by-step menus, restrict cancellation methods to specific means or procedures, and require unnecessary steps during the cancellation, subscription, or membership withdrawal processes.
The proposed amendment targets the issue of users being unable to execute their decision to stop using a service due to complicated procedures. Coupang faced criticism last year after a data breach incident in June, where users found the cancellation process overly complex.
Telecommunications and online service providers believe the amendment does not significantly differ from existing regulations regarding cancellations, suggesting limited additional impact. An industry representative stated, "Telecommunications companies are already subject to regulations that prohibit intentionally complicating cancellation procedures or obstructing cancellations."
The representative acknowledged the legislative intent to enhance user choice and convenience but noted that in telecommunications, users must consider various conditions such as bundled products, contracts, discounts, and installment payments when changing plans or canceling services. Therefore, they argued that the system should be designed with user convenience and service characteristics in mind.
Platform industry representatives emphasized the need to consider different operational methods for various plans and services. They warned that uniformly restricting procedures for explaining remaining benefits and refund conditions during cancellations could increase the burden on providers.
One platform industry representative remarked, "While clear dark patterns should certainly be penalized, each company has different terms and refund policies, and requiring identical cancellation procedures could create challenges."
There are concerns that lowering the barriers to cancellation may reduce the benefits offered to existing subscribers. Providers may scale back discounts or service improvements they had previously invested in, anticipating long-term usage.
Kim Yong-hee, a professor at Sun Moon University, noted, "There is a possibility that efforts to improve services and enhance price competitiveness to secure subscribers may not continue. Users who previously had no intention of canceling may receive lower levels of service or benefits than before."
To enhance the effectiveness of the legislation, Kim suggested aligning the convenience of joining and canceling services while establishing criteria to differentiate between necessary information provision and cancellation obstruction. He stated, "For example, if two steps are required to join, the cancellation process should be designed to match that level. Procedures explaining the expiration of cash, points, or remaining benefits could be allowed as additional steps."
* This article has been translated by AI.
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