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ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE — 법갈피

영문법령 / ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE

ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE

법률타법개정시행 2025-10-01공정거래위원회 · 제21066호 · 공포 2025-10-01

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to protect the rights and interests of consumers and enhance market confidence by prescribing matters relating to the fair trade of goods or services by means of electronic commerce transactions, mail orders, etc., thereby contributing to the sound development of the national economy.

[This Article Wholly Amended on Feb. 17, 2012]

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Jun. 1, 2012>

1. The term "electronic commerce transaction" means conducting commercial activities by means of an electronic transaction (referring to the electronic transaction as defined in subparagraph 5 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply);

2. The term "mail order" means selling goods or services (hereinafter referred to as "goods, etc.") by providing information on the sale of goods, etc. (including the right to use a specific facility or to be provided with services; hereinafter the same shall apply) and receiving a consumer's order by means of mail, telecommunications or other methods prescribed by Prime Ministerial Decree; provided, sales by telemarketing as defined in subparagraph 3 of Article 2 of the Act on Door-to-Door Sales shall be excluded from the scope of mail orders;

3. The term "mail order distributor" means a person who is engaged in mail order or a person who conducts the mail order business in accordance with a contract with the former;

4. The term "mail order brokerage" means the act of intermediating a mail order between both parties to a transaction by allowing the use of a cybermall (referring to a virtual shopping mall established to transact goods, etc. using computers, etc. and information communications facilities; hereinafter the same shall apply), or by other methods prescribed by Prime Ministerial Decree;

5. The term "consumer" means any of the following persons:

a. A person who consumes (including using; hereinafter the same shall apply) goods, etc. supplied by business operators for daily consumption;

Article 5(Utilization of electronic documents) #

(1) Notwithstanding Article 6(2)2 of the Framework Act on Electronic Documents and Transactions, where a business operator fails to send an electronic document (referring to the electronic message as defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply) to the address (referring to the data processing system as defined in subparagraph 2 of Article 2 of the Framework Act on Electronic Documents and Transactions) designated beforehand in the agreement to make a transaction by means of an electronic document, the business operator shall not claim any right arising out of such electronic document; provided, this shall not apply to the cases prescribed by Presidential Decree, such as where it is of great urgency, where the consumer has already expected that the transaction shall be made by an electronic document, or where the consumer has already printed out the electronic document. <Amended on Jun. 1, 2012>

(2) Where a business operator intends to use an electronic document with a digital signature (referring to the digital signature as defined in subparagraph 2 of Article 2 of the Digital Signature Act; hereinafter the same shall apply), he or she shall notify the consumer of the validity, receipt procedures and methods, etc. of the relevant electronic document, as prescribed by Presidential Decree.

(3) In using electronic documents, a business operator shall neither compel (including de facto compulsion of the use of any specific digital signature by means of special standards, etc.) the consumer to use a specific method of digital signature, nor unreasonably restrict the use of a certain method of digital signature of the consumer’s choice.

(4) Where a business operator who conducts electronic commerce transactions makes it possible for a consumer to join a membership, to sign up for a contract, or to be provided with information related to the consumer, etc. through an electronic document, he or she shall also make it possible for a consumer to withdraw a membership, to cancel an order, to terminate, to revoke or change a contract, or to withdraw consent to the provision and use of information, etc. through an electronic document.

(5) If a business operator who conducts electronic commerce transactions is requested by a consumer to provide confirmation or verification concerning the transaction of goods, etc. through an electronic document, he or she shall comply with such request.

(6) Paragraphs (4) and (5) shall not apply where a business operator who conducts electronic commerce transactions notifies consumers beforehand of the difficulty of providing electronic documents for clear technical or security reasons.

(7) When a business operator who conducts electronic commerce transactions performs the obligations under paragraphs (4) and (5), business operators involved in the establishment and operation of the relevant cybermall shall cooperate by taking necessary measures for fulfilling such obligations.

[This Article Wholly Amended on Feb. 17, 2012]

Article 8(Securing confidence in electronic payment) #

(1) Where a business operator uses an electronic means prescribed by Presidential Decree in the payment of the purchase price (hereinafter referred to as "electronic payment"), the persons related to electronic payment who are prescribed by Presidential Decree, such as the business operator, issuer of the means of electronic payment and provider of electronic payment services (hereinafter referred to as "electronic payment business operator, etc.") shall take measures necessary for maintaining security of the relevant information.

(2) Where an electronic payment is made, the business operator, electronic payment business operator, etc. shall clearly notify the following to confirm whether the consumer's subscription is his or her true expression of intent and shall prepare procedures for the consumer to confirm the same, as prescribed by Presidential Decree:

1. Contents and types of goods, etc.;

2. Prices of goods, etc.;

3. Service period.

(3) Where an electronic payment is made, the business operator, electronic payment business operator, etc. shall notify the consumer of such fact by a method prescribed by Prime Ministerial Decree, such as transmission of an electronic document, and enable the consumer to access the data on the electronic payment at any time.

(4) Any person who issues the means of advance payment for the purchase or use of goods, etc. as one of the means of electronic payment in a cybermall shall indicate or announce matters regarding the confirmation of confidence in such means of payment, restrictions on the use, or other precautions, as prescribed by Prime Ministerial Decree.

(5) Where a dispute arises between a business operator and a consumer over electronic payment, the electronic payment business operator, etc. shall cooperate in the resolution of such dispute by allowing the perusal, etc. of the information regarding payment, as prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 17, 2012]

Article 9-2(Responsibilities of providers of electronic message board services) #

(1) Where any mail order or mail order brokerage is conducted by using the relevant message board, a provider of information and communications services defined in Article 2(1)3 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, who operates a message board defined in subparagraph 9 of that paragraph (hereinafter referred to as "provider of electronic message board services") shall perform the following matters to prevent consumer damage from occurring:

1. He or she shall guide and recommend a person who conducts mail order or mail order brokerage as a business by using the message board (hereinafter referred to as "mail order distributor, etc., using message board") to comply with his or her obligations prescribed in this Act;

2. Where any dispute arises between a mail order distributor using message board and a consumer in connection with this Act, he or she shall prepare a system to file a request for relief of the consumer by proxy with the mediation organization dedicated to resolution of disputes over the consumer damage referred to in Article 33 at the request of the consumer, and operate it as prescribed by Presidential Decree;

3. Other matters prescribed by Presidential Decree as necessary to prevent consumer damage.

(2) A provider of electronic message board services shall take measures for verifying the personal identification information of a mail order distributor, etc., using message board, which are referred to in Article 13(1)1 and 2.

(3) Where any dispute arises between a mail order distributor, etc., using message board and a consumer, the provider of electronic message board services shall cooperate in the resolution of such dispute by providing the personal identification information of the mail order distributor, etc., using message board obtained by taking measures for verifying the personal identification pursuant to paragraph (2), upon request of any of the following persons:

1. A mediation organization dedicated to resolution of disputes over consumer damage referred to in Article 33;

2. The Fair Trade Commission;

3. A Mayor/Do Governor or the head of a Si/Gun/Gu.

[This Article Added on Mar. 29, 2016]

Article 13(Provision of information on identity and transaction terms) #

(1) In placing indications or advertisements to take orders for a transaction of goods, etc., a mail order distributor shall include therein each of the following: <Amended on Mar. 29, 2016>

1. Trade name and name of the representative;

2. Address, telephone number, and e-mail address;

3. Matters by which the report filed with the Fair Trade Commission, a Special Self-Governing City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu under Article 12 can be verified, such as its number and the name of the agency which has accepted such report.

(2) A mail order distributor shall indicate, advertise, or notify the following in an appropriate manner so that consumers can clearly understand the terms of a transaction of goods, etc., before concluding a contract and sign a deal without any error or discrepancy, and upon conclusion of a contract, a mail order distributor shall provide documents relating thereto, which include the following, to the other party of the contract before supplying the goods, etc.; provided, where any ground prescribed by Presidential Decree exists, the documents may be issued to a person who has received the goods, etc., on behalf of the other party to the contract as long as it does not infringe upon the rights of the latter:

1. Trade names of the supplier and seller of the goods, and names, addresses, telephone numbers, etc., of representatives thereof;

2. Names, types and contents of the goods, etc.;

2-2. Information on the goods, etc. In such cases, the description marked on the product may substitute a written description of the contents of the contract;

3. Price (where the price has not been decided, the detailed method of decision) of the goods, etc., payment method and time;

4. Method and date to supply goods, etc.;

5. Matters regarding the deadline, method of exercise, and effect of cancellation of an order or termination of a contract (hereinafter referred to as "cancellation, etc., of an order") (including forms necessary to exercise the right to cancel an order, etc.);

6. Requirements and procedures for exchange, return and guarantee of the goods, etc., refund, and the payment of compensation for delayed refund;

7. Technical matters necessary for the electrical transmission, installation, etc., of the goods, etc., which can be supplied by means of an electronic medium;

8. Matters concerning compensation for damage, settlement of complaints against the goods, etc., and resolution of disputes between consumers and business operators;

9. Terms and conditions of the transaction (including the ways to verify the details thereof);

10. The fact that the consumer may choose to deposit funds for paying for the goods, etc., with a third party prescribed by Presidential Decree until he or she is supplied with the goods, etc. (hereinafter referred to as "escrow system") or to require the mail order distributor to conclude a contract, etc., of consumer damage compensation insurance under Article 24(1) for the purpose of ensuring a safe purchase (limited only to prepaid mail orders under Article 15(1) and excluding transactions falling under any subparagraph of Article 24(3));

11. Other terms of transaction that may affect consumers’ decision on the purchase or matters prescribed by Presidential Decree as necessary for damage relief for consumers.

(3) When concluding a contract on the transaction of goods, etc., with a minor, a mail order distributor shall inform the minor of the fact that if his or her legal guardian does not agree to the contract, the minor or the legal guardian can cancel the contract.

(4) The Fair Trade Commission may determine and publicly notify the matters concerning the trade name, etc., of mail order distributors under paragraphs (1) and (2), and contents and methods of indication, advertisement and announcement of the information on goods, etc., and transaction terms and conditions. In such cases, the contents and methods of indication, advertisement and announcement may be determined differently in consideration of the transaction methods or the characteristics of the goods, etc.

(5) A mail order distributor shall faithfully perform the transaction terms indicated, advertised, or announced to consumers pursuant to paragraph (2).

(6) Where there is an increase in regular payments for goods, etc. or where a conversion to a regular payment plan is made for the goods, etc. that have been supplied free of charge, a mail order distributor shall beforehand obtain consent from the consumers to the date and time of such increase or conversion, before and after prices, and the method of payment within the period prescribed by Presidential Decree, and notify the consumers of the conditions and methods for revocation or cancellation, and the effects thereof. <Added on Feb. 13, 2024>

[This Article Wholly Amended on Feb. 17, 2012]

Article 17(Cancellation of orders) #

(1) A consumer who has concluded a contract with a mail order distributor on the purchase of goods, etc., may cancel the contract, etc., within the period provided for in the following subparagraphs (referring to the period agreed by the parties to a transaction, if it exceeds the period prescribed in any of the following subparagraphs): <Amended on Mar. 29, 2016>

1. Seven days from the date of receiving a document on the contents of the contract provided for in Article 13(2); provided, where the supply of the goods, etc., has been performed after the delivery of a document, seven days from the date the goods, etc., have been supplied, or the supply of the goods, etc., has begun;

2. Seven days from the date he or she knew or could have known the address, where a document on the contents of a contract provided for in Article 13(2) has not arrived, a document without the address, etc., of the mail order distributor has arrived, or the cancellation, etc., of an order cannot be made within the period set forth in subparagraph 1 due to the change of the mail order distributor’s address, etc.;

3. Seven days from the date the interference is ended, where any interference, etc., with cancellation, etc., of orders under Article 21(1)1 or 2 has existed.

(2) In any of the following cases, no consumer shall cancel an order, etc., under paragraph (1) against the will of a mail order distributor; provided, where the mail order distributor fails to take the measures under paragraph (6), the consumer may cancel the order, etc., even in cases falling under subparagraphs 2 through 5: <Amended on Mar. 29, 2016>

1. Where the goods, etc., have been destroyed or damaged due to a cause attributable to the consumer; provided, this shall not apply where the package, etc., has been damaged to check the contents of the goods, etc.;

2. Where the value of the goods, etc., has substantially decreased due to consumer’s use or partial consumption;

3. Where the value of the goods, etc., has substantially decreased due to the elapse of time, making resale difficult or impossible;

4. Where the package of copiable goods, etc., has been destroyed;

5. Where the provision of any services or digital content defined in subparagraph 5 of Article 2 of the Framework Act on the Promotion of Cultural Industries has commenced; provided, this shall not apply to the portion for which the provision of such services or digital content has not commenced in cases of a contract comprising divisible services or divisible digital content;

6. Other cases prescribed by Presidential Decree for safe transactions.

(3) Notwithstanding paragraphs (1) and (2), where the contents of the goods, etc., are different from what was indicated or advertised, or have been performed differently from the terms of the contract, the consumer may cancel the order, etc., within three months from the date of receiving the goods, or within 30 days from the date he or she knew or could have known such fact.

(4) Where the cancellation, etc., of an order pursuant to paragraph (1) or (3) is made in writing, it shall enter into force on the date of sending the document to that effect.

(5) In applying paragraphs (1) through (3), if a dispute arises as to whether the consumer is responsible for the damage to the goods, etc., whether and when the contract on the purchase of the goods, etc., was signed, and whether and when the goods, etc., were supplied, the mail order distributor shall prove it.

(6) In cases of the goods, etc., for which an order cannot be cancelled under paragraph (2) 2 through 5, a mail order distributor shall take the necessary measures not to encumber the exercise of rights to cancel, etc., the order, such as clearly indicating the fact on the package of the goods, etc., or in a place where the consumer can easily recognize, or providing free samples; provided, where an order, etc., for digital contents among services or digital content referred to in paragraph (2) 5 cannot be cancelled by a consumer, the mail order distributor shall, in addition to indicating the fact that it is impossible to cancel an order, etc., take measures not to encumber the exercise of rights to cancel, etc., the order, such as by providing free samples, as prescribed by Presidential Decree. <Amended on Mar. 29, 2016>

[This Article Wholly Amended on Feb. 17, 2012]

Article 18(Effect of cancellation of orders) #

(1) Where a consumer has cancelled, etc., an order pursuant to Article 17(1) or (3), he or she shall return the goods, etc., already delivered; provided, this shall not apply where goods, etc., already supplied are services or digital content. <Amended on Mar. 29, 2016>

(2) A mail order distributor (including a person who has received payment for the goods, etc., or a person who has concluded a contract on a mail order with a consumer; hereafter in paragraphs (2) through (10), the same shall apply) shall make a refund of the price of goods, etc., received, within three business days from any of the following dates. In such cases, if the mail order distributor delays the refund to the consumer, he or she shall pay a penalty interest for delay calculated by multiplying the interest rate prescribed by Presidential Decree within 40 percentage per annum (hereinafter referred to as "delay compensation"), taking into consideration an overdue interest rate applied by banks under the Banking Act and economic situation: <Amended on Mar. 29, 2016>

1. Where a mail order distributor has supplied goods, the date the goods are returned pursuant to the main clause of paragraph (1);

2. Where a mail order distributor has supplied any services or digital content, the date the order is cancelled, etc., pursuant to Article 17(1) or (3);

3. Where a mail order distributor has not supplied goods, etc., the date the order is cancelled, etc., pursuant to 17(1) or (3).

(3) In making a refund pursuant to paragraphs (1) and (2), where a consumer has paid the price of the goods, etc., by credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act, or other means of settlement prescribed by Presidential Decree, a mail order distributor shall promptly request a business operator who has supplied the relevant means of settlement (hereinafter referred to as "settlement business operator") to stop or cancel the request for payment; provided, if the mail order distributor has already received payment from the settlement business operator, he or she shall promptly make a refund to such settlement business operator, and notify the consumer of this fact.

(4) A settlement business operator who has received a refund pursuant to the proviso to paragraph (3) shall promptly make a refund to the consumer in question or take measures necessary for refund.

(5) A mail order distributor, who falls under the proviso to paragraph (3) and had a consumer make a payment due to a delayed refund, shall pay the consumer a delay compensation for the corresponding period.

(6) Notwithstanding the proviso to paragraph (3), where a mail order distributor fails to make a refund to a settlement business operator without good cause, a consumer may request the settlement business operator to offset the amount to be refunded against other debt he or she owes to the relevant mail order distributor. In such cases, the settlement business operator may offset by other debt that the consumer owes to the relevant mail order distributor, as prescribed by Presidential Decree.

(7) Where a settlement business operator delays offset referred to in paragraph (6) without good cause, the consumer may refuse to settle the payment to the settlement business operator. In such cases, neither mail order distributor nor the settlement business operator shall give any disadvantages to the consumer, such as treating the consumer as a person who has defaulted on making payment within the prescribed period, on the grounds of such refusal.

(8) In cases falling under paragraph (1) where goods, etc., have already been partially used or consumed, a mail order distributor may request a consumer to pay the amount equivalent to the profit the consumer gained from such partial use or consumption or to the expenses incurred in the supply of the goods, etc., within the amount prescribed by Presidential Decree.

(9) In cases of cancellation, etc., of an order under Article 17(1), a customer shall bear the expenses for returning the goods, etc., supplied and a mail order distributor shall not request the consumer to pay either the penalty for the breach of contract, or compensation for damage.

(10) In cases of cancellation, etc., of an order under Article 17(3), a mail order distributor shall bear the expenses for returning the goods, etc.

(11) Where a mail order distributor, a person who has received payment, or a person who has concluded a contract on a mail order with a consumer is not the same person, each one shall be jointly and severally liable for the performance of obligations relating to the refund of payment pursuant to paragraphs (1) through (7) upon the cancellation, etc., of an order pursuant to Article 17(1) and (3).

[This Article Wholly Amended on Feb. 17, 2012]

Article 21(Prohibitions) #

(1) Neither a business operator engaged in electronic commerce transactions nor a mail order distributor shall do any of the following acts:

1. Luring customers, concluding a deal with consumers, or interfering with customers’ cancellation, etc. of orders or termination of contracts by providing false or exaggerated information or by deceptive means;

2. Changing or shutting down the address, telephone number, Internet domain name, etc. for the purpose of interfering with cancellation, etc. of orders;

3. Inflicting damage on consumers by neglecting to address the shortage of human resources or facilities required to resolve disputes or complaints for a considerable time;

4. Unilaterally supplying the goods, etc. without the consumer's order and requesting the payment therefor, or requesting only the payment without supplying the goods, etc.;

5. Forcing the consumer to sign up for goods or services by telephone, facsimile, computer communications, electronic mail, etc. even though the consumer made it clear that he or she had no intention to do so;

6. Using the information on a consumer without obtaining his or her consent, or beyond the boundary of such consent; provided, this shall not apply to any of the following cases:

a. Cases prescribed by Presidential Decree as inevitable for the execution of the contract with the consumer, such as delivery of the goods, etc.;

b. Cases where such act is necessary for the payment for the goods, etc.;

c. Cases prescribed by Presidential Decree as necessary to identify the consumer so as to prevent any illegal use of his or her name;

d. Cases where there exist any unavoidable grounds provided for in this Act or any other statutes exist;

7. Making computer programs, etc. installed without the consumer's consent or without an easy, clear explanation and notification to the consumers as prescribed by Prime Ministerial Decree.

(2) To prevent violations of this Act and damage to consumers, the Fair Trade Commission may determine and publicly notify the standards that the business operators engaged in electronic commerce transactions or mail order distributors are required to observe.

[This Article Wholly Amended on Feb. 17, 2012]

Article 21-2(Acts prohibited in operation of online interface) #

(1) Where a business operator engaged in electronic commerce transactions or a mail order distributor operates an online interface (referring to a medium between a consumer and a business operator, such as a website or mobile app; hereinafter the same shall apply), he or she shall not conduct any of the following acts:

1. Inducing consumers or making transactions with consumers by means of indicating or advertising only a portion of the total amount of payment that consumers are required to make for the purchase and use of goods, etc. (including the essential costs associated with the provision of goods, etc. in addition to the price of such goods, etc.; hereinafter the same shall apply) on the first screen of an indication or advertisement informing consumers of the price of the goods, etc. through a cybermall; provided, this shall not apply where there is a justifiable reason not to indicate or advertise the total amount of payment and such reason is notified to consumers as prescribed by Prime Ministerial Ordinance;

2. Inducing consumers to subscribe to a transaction of other goods, etc. by providing an option already marked as if the consumers intend to subscribe even before they choose whether to do so, where options are provided to ask if they wish to subscribe for the purchase and use of other goods, etc., membership registration, conclusion of a contract, etc. in the process of purchase and use of goods, etc., membership registration, conclusion of a contract, etc.;

3. Making an option highly distinctive from the other options visually, in terms of size, shape, color, etc., when providing options to consumers with respect to the purchase and use of goods, etc., membership registration, conclusion of a contract or cancellation of purchase, membership withdrawal, termination of a contract (hereinafter referred to as "purchase, etc."), which falls under any of the following:

a. An act likely to mislead consumers as if they could choose only a specific item;

b. An act likely to mislead consumers to believe that it is mandatory for them to choose a specific item as a condition for making a purchase, etc.;

4. Obstructing consumers' cancellation of purchase, withdrawal from membership, termination of a contract, etc. by any of the following methods without justifiable grounds:

a. Making the procedures for cancellation, withdrawal, termination, etc. more complicated than those for purchase of goods, etc., membership registration, conclusion of a contract, etc.;

b. Restricting cancellation, withdrawal, termination, etc. by making them available only by methods other than those for the purchase of goods, etc., membership registration, conclusion of a contract, etc.;

5. Obstructing consumers' free decision-making by repeatedly requesting them, through a pop-up window, etc., to change their choice or decision with respect to the content already chosen or decided on; provided, this shall not apply where consumers are allowed to choose not to receive such request for at least the period prescribed by Presidential Decree when a request for change of a choice or decision is made.

(2) The Fair Trade Commission may determine guidelines for encouraging voluntary compliance by business operators for the prevention of the acts listed in paragraph (1) and the protection of consumers, after hearing the opinions of the parties to transactions, institutions, and organizations in the relevant fields.

[This Article Added on Feb. 13, 2024]

[Enforcement Date: Feb. 13, 2024]

Article 24(Contracts of consumer damage compensation insurance) #

(1) The Fair Trade Commission may encourage related business operators to conclude any of the following contracts (hereinafter referred to as "contract, etc. of consumer damage compensation insurance") for the purpose of consumer protection in an electronic commerce transaction or a mail order; provided, the issuer of the means of settlement referred to in Article 8(4) shall conclude a contract, etc. of consumer damage compensation insurance:

1. An insurance contract under the Insurance Business Act;

2. A contract of a debt guarantee signed with the institution under Article 38 of the Act on the Establishment of Financial Services Commission to secure payment of consumer damage compensation;

3. A mutual aid contract with the mutual aid association established pursuant to paragraph (10).

(2) Notwithstanding paragraph (1), where a consumer chooses to use the escrow system under Article 13(2)10 or requires the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance with respect to a prepaid mail order, the mail order distributor shall allow the consumer to use such system or conclude the contract, etc.

(3) Paragraph (2) shall not apply where a consumer conducts any of the following transactions:

1. Deleted; <May 28, 2013>

2. A transaction of paying for goods, etc. by credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act. In such cases, if a consumer fails to receive the goods, etc., the credit card company as defined in subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act shall cooperate in cancelling the payment, etc. for the prevention and recovery of damage to the consumer;

3. A transaction of buying goods, etc. which are sent through information and communications networks or the delivery of which is not confirmable by a third party referred to in Article 13(2)10;

4. A transaction of buying goods, etc. supplied in installments for a certain period of time;

5. Transactions determined and publicly notified by the Fair Trade Commission as those which do not require an escrow system or a contract, etc. of consumer damage compensation insurance or for whom such system or contract is not easily available because the safety of purchase is firmly secured by other statutes or there exist other causes similar to those in subparagraphs 1 through 4.

(4) Matters necessary for the use of an escrow system or the conclusion of a contract, etc. of consumer damage compensation insurance under paragraph (2) shall be prescribed by Presidential Decree.

(5) A contract, etc. of consumer damage compensation insurance shall provide a level of coverage adequate enough to pay compensation for damage to consumers caused by any violation of this Act, or to secure the confidence in the issuer of the settlement means under Article 8(4). In such cases, the detailed standards thereof shall be prescribed by Presidential Decree.

(6) A person who is liable to pay the consumer damage compensation pursuant to the contract, etc. of consumer damage compensation insurance shall make a payment without delay where a cause of payment arises, and in the event of a delayed payment, he or she shall pay the compensation for such delay.

(7) A business operator who intends to conclude a contract, etc. of consumer damage compensation insurance shall not submit false data on sales amount, etc. to conclude a contract, etc. of consumer damage compensation insurance.

(8) A business operator who has concluded a contract, etc. of consumer damage compensation insurance under paragraph (1) may use a mark indicating the fact, but the business operator who has not concluded such contract, etc. shall not use a mark, or make or use any similar mark.

(9) Paragraph (8) shall apply mutatis mutandis to the use of the escrow system under paragraph (2).

(10) Business operators conducting an electronic commerce transaction or mail order distributors may establish a mutual aid association to protect consumers pursuant to paragraph (1). In such cases, Article 38 of the Act on Door-to-Door Sales shall apply mutatis mutandis to the establishment and operation of the mutual aid association under the condition that "business operators who have filed a report under Article 5(1) or registered their business under Article 13(1) or Article 29(3)" in Article 38(1) of the said Act shall be construed as "business operators who conduct an electronic commerce transaction or mail order distributors" and "Article 37(1)3" as "Article 24(1) 3 of the Act on the Consumer Protection in the Electronic Commerce Transactions", and "this Act" in Article 38(9) and (10) of the Act on Door-to-Door Sales as "the Act on the Consumer Protection in the Electronic Commerce Transactions," respectively.

[This Article Wholly Amended on Feb. 17, 2012]

Article 26(Investigation of violations) #

(1) Where the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu acknowledges the fact that a violation of this Act exists, he or she/it may conduct necessary investigations ex officio.

(2) For a Mayor/Do Governor or the head of a Si/Gun/Gu to conduct an investigation pursuant to paragraph (1), the Mayor/Do Governor shall make a prior notification to the Fair Trade Commission, and the head of a Si/Gun/Gu to the Fair Trade Commission and to the relevant Mayor/Do Governor. Where the investigation, etc. is likely to overlap with other investigations, the Fair Trade Commission may request the Mayor/Do Governor or the head of a Si/Gun/Gu to stop it. In such cases, the Mayor/Do Governor or the head of the Si/Gun/Gu who has been requested to stop the inspection shall do so except on justifiable grounds.

(3) Where an investigation has been conducted pursuant to paragraph (1) or (2), the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu shall make a written notification to the parties to the relevant case of the results (including the contents of the disposition, where a disposition such as a corrective order is to be issued based on the investigation results).

(4) Anyone who has acknowledged a violation of the provisions of this Act may report the fact to the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu.

(5) Where five years have elapsed since a violation of this Act, the Fair Trade Commission shall neither issue an order of corrective measures pursuant to Article 32, nor impose penalty surcharges, etc. pursuant to Article 34 for such violation; provided, this shall not apply in any of the following cases: <Amended on Jun. 12, 2018>

1. Where the parties have accepted but failed to follow a recommendation or mediation proposal prepared by a mediation organization dedicated to resolution of disputes over consumer damage under Article 33(1);

2. Where a new disposition is made based on the reasons for a court decision after a corrective measure or a disposition imposing penalty surcharges has been revoked according to the decision.

(6) To conduct an investigation under paragraph (1), the Fair Trade Commission may organize an investigation team jointly with the Korea Consumer Agency established under Article 33 of the Framework Act on Consumers. In such cases, the composition of an investigation team and specific methods or procedures for an investigation, and other necessary matters shall be prescribed by Presidential Decree.

(7) The Fair Trade Commission may pay allowances or travel expenses, within budgetary limits, to the executives and employees of the Korea Consumer Agency involved in an investigation conducted under paragraph (6).

[This Article Wholly Amended on Feb. 17, 2012]

Article 32-2(Orders for temporary suspension) #

(1) Where any electronic commerce transaction or mail order of a business operator who conducts electronic commerce transactions or a mail order distributor falls under all of the following conditions, the Fair Trade Commission may order the business operator who conducts electronic commerce transactions or mail order distributor to temporarily suspend all or some of his or her electronic commerce transactions or mail orders, as prescribed by Presidential Decree:

1. Where the electronic commerce transaction or mail order obviously falls under Article 21(1)1;

2. Where a consumer suffers or is likely to suffer damage to his or her property due to the electronic commerce transaction or mail order and urgent prevention of damage is deemed necessary because the damage beyond redemption is likely to spread among many consumers.

(2) Where necessary for the temporary suspension of all or some of electronic commerce transactions or mail orders under paragraph (1), the Fair Trade Commission may request a hosting service provider, mail order broker, provider of electronic message board services, etc., to take measures prescribed by Presidential Decree, such as the suspension of provision of the relevant services; and the business operator in receipt of such request shall comply therewith unless there is good cause.

(3) Where any business operator who conducts electronic commerce transactions or mail order distributor is deemed to fall under paragraph (1), a consumer organization registered under Article 29 of the Framework Act on Consumers or any other institution or organization prescribed by Presidential Decree may request the Fair Trade Commission in writing (including an electronic document) to issue an order for temporary suspension of all or some of the electronic commerce transactions or mail orders.

(4) A person dissatisfied with an order issued under paragraph (1) may raise an objection to the Fair Trade Commission within seven days from the date the order is received.

(5) When a person in receipt of an order issue under paragraph (1) raises an objection pursuant to paragraph (4), the Fair Trade Commission shall notify the Seoul High Court of such fact without delay; and the Seoul High Court, in receipt of the notification, shall proceed to the trial pursuant to the Non-Contentious Case Procedure Act.

(6) Article 15 of the Non-Contentious Case Procedure Act shall not apply to a trial held pursuant to paragraph (5).

[This Article Added on Mar. 29, 2016]

Article 45(Administrative fines) #

(1) A person who continues his or her business in violation of Article 32-2(1) shall be subject to an administrative fine not exceeding 100 million won. <Added on Mar. 29, 2016>

(2) A business operator or a trade association shall be subject to an administrative fine of up to 30 million won for falling under either subparagraph 1 or 2, and up to 50 million for falling under subparagraph 3; and the executive officers, employees, or other interested parties of the business operator or of the trade association shall be subject to an administrative fine of up to five million for falling under either subparagraph 1 or 2, and up to 10 million for falling under subparagraph 3: <Added on Jun. 12, 2018; Dec. 29, 2020>

1. A person who fails to appear without good cause in response to a summons under Article 81(1)1 of the Monopoly Regulation and Fair Trade Act applied mutatis mutandis under Article 39(2);

2. A person who fails to file a report or to submit necessary materials or articles under Article 81(1)3 or 81(6) of the Monopoly Regulation and Fair Trade Act applied mutatis mutandis under Article 39(2), or who files a false report or submits false materials or articles;

3. A person who refuses, obstructs or evades investigations under Article 81(2) and (3) of the Monopoly Regulation and Fair Trade Act applied mutatis mutandis under Article 39(2).

(3) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended on Mar. 29, 2016; Jun. 12, 2018>

1. A person who fails to perform the matters to prevent consumer damage from occurring, in violation of Article 9-2(1);

2. A person who engages in any of the prohibited acts specified in Article 21(1)1 through 5;

3. An issuer of the means of payment stipulated in Article 8(4) who fails to enter into a contract, etc. of consumer damage compensation insurance, in violation of the proviso, with the exception of the subparagraphs, of Article 24(1);

4. A prepaid mail order distributor under Article 15(1) who violates Article 24(2);

5. An issuer of the means of payment stipulated in Article 8(4) who submits false documents to enter into a contract, etc. of consumer damage compensation insurance, in violation of Article 24(7);

6. A prepaid mail order distributor under Article 15(1) who submits false documents to enter into a contract, etc. of consumer damage compensation insurance, in violation of Article 24(7);

7. A person who fails to comply with a request by the Fair Trade Commission, in violation of Article 32-2(2);

8. Deleted; <Jun. 12, 2018>

9. Deleted; <Jun. 12, 2018>

10. Deleted. <Jun. 12, 2018>

(4) Any of the following persons shall be subject to an administrative fine of up to five million won: <Amended on Mar. 29, 2016; Jun. 12, 2018; Feb. 13, 2024>

1. A person who fails to preserve the transaction records, or fails to provide consumers with a means of accessing and preserving transaction records, in violation of Article 6;

2. A person who fails to indicate the identity information of the business operator prescribed in Article 10(1) or 13(1);

3. A person who fails to make a report under Article 12(2) and (3);

4. A person who fails to indicate, advertise, or notify the stipulated matters or fails to deliver documents on the contents of the contract, in violation of Article 13(2);

5. A person who fails to inform the other party to a transaction, who is a minor, of the fact that a contract on the transaction of goods, etc., can be cancelled, in violation of Article 13(3);

5-2. A person who fails to obtain consent from consumers or to notify consumers, in violation of Article 13(6);

6. A person who fails to provide information on the matters referred to in Article 13(2)5, in violation of subparagraph 1a of Article 20-3;

7. A person who commits a prohibited act falling under any subparagraph of Article 21-2(1).

(5) Any person who fails to comply with an order to maintain order in violation of Article 66 of the Monopoly Regulation and Fair Trade Act applied mutatis mutandis under Article 39(1) shall be subject to an administrative fine of up to one million one. <Added on Jun. 12, 2018; Dec. 29, 2020>

(6) Administrative fines under paragraphs (1) through (4) shall be imposed and collected by the Fair Trade Commission, Mayors/Do Governors, or the head of a Si/Gun/Gu. <Amended on Mar. 29, 2016; Jun. 12, 2018>

(7) Administrative fines under paragraph (5) shall be imposed and collected by the Fair Trade Commission. <Added on Jun. 12, 2018>

(8) The standards for imposing administrative fines under paragraphs (1) through (5) shall be prescribed by Presidential Decree. <Added on Jun. 12, 2018>

[This Article Wholly Amended on Feb. 17, 2012]

ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Exclusion of application) #

Article 4(Relationship to other statutes) #

Article 5(Utilization of electronic documents) #

Article 6(Preservation of transaction records) #

Article 7(Prevention of input errors) #

Article 8(Securing confidence in electronic payment) #

Article 9(Cooperation of delivery business operators) #

Article 9-2(Responsibilities of providers of electronic message board services) #

Article 10(Operation of cybermalls) #

Article 11(Utilization of information on consumers) #

Article 12(Reporting by mail order distributors) #

Article 13(Provision of information on identity and transaction terms) #

Article 14(Confirmation of orders) #

Article 15(Supply of goods) #

Article 16 #

Article 17(Cancellation of orders) #

Article 18(Effect of cancellation of orders) #

Article 19(Restriction on amount of compensation for damage) #

Article 20(Obligations and liabilities of mail order brokers) #

Article 20-2(Liability of mail order brokers and requesters of mail order brokerage) #

Article 20-3(Responsibilities of mail order brokerage business operators who perform important part of mail orders) #

Article 21(Prohibitions) #

Article 21-2(Acts prohibited in operation of online interface) #

Article 21-3(Voluntary code of practice relating to online internterface) #

Article 22(Handling of cancellation of orders during temporary closure of business) #

Article 23(Formulation of consumer protection guidelines in electronic commerce transactions) #

Article 24(Contracts of consumer damage compensation insurance) #

Article 24-2(Matters to be observed when sending commercial advertisements) #

Article 25(Support for consumer organizations on electronic commerce transactions) #

Article 26(Investigation of violations) #

Article 27(Search of public information) #

Article 28(Disclosure of information on violations) #

Article 29(Fair evaluation and authentication) #

Article 30(Reporting and supervision) #

Article 31(Recommendation to correct violations) #

Article 32(Corrective measures) #

Article 32-2(Orders for temporary suspension) #

Article 33(Requests for mediation of consumer damage disputes) #

Article 34(Penalty surcharges) #

Article 35(Prohibition of contracts disadvantageous to consumers) #

Article 36(Exclusive jurisdiction) #

Article 37(Registration of trade association) #

Article 38(Delegation and entrustment of authority) #

Article 39(Application mutatis mutandis of the Monopoly Regulation and Fair Trade Act) #

Article 40(Penalty provisions) #

Article 41 #

Article 42(Penalty provisions) #

Article 43(Penalty provisions) #

Article 44(Joint penalty provisions) #

Article 45(Administrative fines) #

Article 46(Special cases concerning application of administrative fines) #