Hello, I am Attorney Bae Gi-hyung from Cheongchul Law Firm.

Recently, the importance of consumer protection in the digital environment has been increasingly emphasized. In particular, with the emergence of 'Dark Patterns' that lead to consumer confusion in online shopping malls and platforms, the Fair Trade Commission has decided to strengthen regulations on this issue. The amended e-commerce law, which will take effect on February 14, 2025, explicitly regulates these dark patterns and introduces new consumer protection measures related to subscription payment methods.

Let’s summarize the main points of this amendment in a Q&A format.

[Question] What are dark patterns, and why have they become a subject of regulation?

[Answer]

Dark patterns refer to deceptive user interfaces (UI) and marketing techniques used by online businesses to provoke consumer confusion or exploit carelessness, leading to unnecessary expenditures. The Fair Trade Commission (hereinafter referred to as 'FTC') has determined that these dark patterns negatively impact consumer protection and has decided to regulate them through the amendment to the e-commerce law that will be implemented in 2025.

[Question] What dark patterns are regulated under the amended e-commerce law?

[Answer]

The amended e-commerce law clearly defines six types of dark patterns.

1. Hidden Subscription: When subscription payment amounts increase or free services transition to paid status, prior consent is mandated.

2. Drip Pricing: Prohibition of displaying only parts of the price instead of the total purchase cost.

3. Forced Preselection: Prohibition of providing additional products or options that are automatically selected without consumer consent.

4. Deceptive Design: Prohibition of using button sizes, colors, etc., to lead consumers to select certain items.

5. Retaining Consumers: Prohibition of actions that make contract termination or membership cancellation difficult.

6. Repeated Interference: Prohibition of actions that continue to induce changes using pop-ups after consumers have made decisions.

[Question] What changes are being made for consumer protection when using subscription services?

[Answer]

According to the amended law, if the subscription payment amount increases or a free service is converted to a paid service, prior consent from the consumer must be obtained.

• Increase in Subscription Payment: Notification and consent procedures are required 30 days prior to the increase.

• Conversion from Free to Paid: Advance notice to consumers is required 14 days prior to the conversion.

If violated, the business may face administrative sanctions such as fines and business suspension.

[Question] What protections can consumers expect from the amended law?

[Answer]

Consumers can expect to receive the following protective measures.

1. Provision of Transparent Pricing Information: Obligation to clearly display the total amount consumers must pay.

2. Prevention of Unnecessary Payments: Preventing specific options from being provided in a pre-selected state.

3. Easy Contract Termination and Withdrawal: Ability to easily cancel subscriptions and withdraw from services without complex procedures.

4. Protection Against Subscription Increases and Paid Conversion: Ensuring sufficient notice and prior consent.

[Question] What penalties are imposed on businesses using dark patterns?

[Answer]

Businesses that deceive consumers using dark patterns can face up to 1 year of business suspension and a maximum fine of 5 million won.

Business Suspension:

• 1st Violation: 3-month Business Suspension

• 2nd Violation: 6-month Business Suspension

• 3rd Violation: 12-month Business Suspension

Fines:

• 1st Violation: 1 million won

• 2nd Violation: 2 million won

• 3rd Violation and Above: 5 million won

  
  

In addition, the FTC may conduct investigations and corrective measures, and businesses must check for compliance with the violations.

[Question] What should businesses prepare for?

[Answer]

Businesses should check the following matters before the amendment takes effect.

1. Review of Subscription and Paid Conversion Processes: Must reflect clear consent procedures from consumers.

2. Inspection of Website and App UI: Changes must be made regarding pre-selected specific options and pricing information provision methods.

3. Improvement of Contract Termination and Withdrawal Procedures: Consumers should be able to terminate contracts easily.

4. Review of Self-Regulatory Guidelines: Conduct self-inspection by referring to the 'Online Dark Patterns Self-Regulation Guidelines' distributed by the FTC.

5. Preparation for Legal Response: Develop responses to the amended law with legal experts.

The FTC is expected to continue monitoring and cracking down on online dark patterns. In particular, intensive inspections are anticipated during the early implementation of the revised law, so businesses are advised to prepare systematically with ample time. If you need legal advice on this matter, please feel free to contact Cheongchul Law Firm.

Cheongchul Law Firm is composed of attorneys from major law firms in Korea, including Kim & Chang, Gwangjang, Taepyungyang, Sejong, and Yulchon, as well as attorneys from corporate legal teams. Not just one attorney, teams of specialized attorneys in relevant fields collaborate to respond. Cheongchul provides not just solutions to specific issues but comprehensive legal consulting aimed at achieving what clients want. If you need help in achieving your goals, do not hesitate to contact Cheongchul.