Fair Trade Commission: "Regulation of Online 'Consumer Inducement Tactics' Under Active Global Discussion... Will Amend the Electronic Commerce Act"

Trends in Overseas Consumer Policies Related to E-commerce and Online Platforms

Dark Patterns Widely Used on Major Platforms like Facebook and Google
ICPEN Conducts 'Internet Cleanup Day' Campaign
Netherlands Establishes 'Online Consumer Protection Guidelines'

[Sejong=Asia Economy Reporter Ju Sang-don] As new forms of transactions on online platforms spread worldwide, covert consumer inducement tactics (dark patterns), such as adding additional products without consumer consent before payment, are increasing, prompting active international discussions and responses. In line with this, the Korea Fair Trade Commission plans to comprehensively revise the 'Act on Consumer Protection in Electronic Commerce, etc.'

On the 25th, the Fair Trade Commission analyzed and announced overseas consumer policy trends based on participation in various international consumer policy meetings (via video conference) in the second half of 2020.

A Fair Trade Commission official stated, "Discussions on consumer protection issues in e-commerce and online platforms are actively taking place in organizations such as the OECD Consumer Policy Committee (CCP), the Working Party on Consumer Product Safety (WPCPS), the International Consumer Product Health and Safety Organization (ICPHSO), and the International Consumer Protection and Enforcement Network (ICPEN). As the boundaries between online content and advertising become blurred, it is becoming difficult to distinguish commercial activities, and companies are inducing consumer purchases through new designs and technical elements (UI)."

Dark patterns refer to deceptive or hidden tricks or information naturally embedded in the internet and mobile environments. Examples include adding additional products or options to the shopping cart without consumer consent before payment, or charging recurring fees disguised as a one-time payment or free trial.

These tactics exploit consumer behavioral biases to influence decision-making, preventing consumers from making independent purchasing decisions, which distinguishes them from 'aggressive marketing.'

Dark patterns are widely used on major online sites such as Facebook and Google. Facebook emotionally manipulates users to make it difficult to refuse permission for facial recognition features. For example, the unsubscribe button for emails is labeled as 'I don't want to receive useful information,' or when canceling subscriptions, users are repeatedly asked if they want to give up various benefits, making them feel guilty for certain choices. Google uses a method where multiple 'Next' buttons must be pressed before the 'Accept' button appears when collecting location information, causing consumers to unknowingly give consent.

In response, ICPEN member countries conducted a joint campaign called 'Internet Cleanup Day' to address misleading and inappropriate information disclosure and fraudulent practices online. The Netherlands established 'Online Consumer Protection Guidelines' that present major online purchase persuasion techniques based on scientific classification, aiming to protect consumers and ensure trust in the online market. The United Kingdom prioritizes identifying consumer deception issues, encouraging voluntary problem improvement and consumer relief efforts on individual sites, and discusses exploring solutions and international cooperation with data scientists and technical experts.

The Competition and Markets Authority (CMA) announced principles related to online accommodation booking platforms, including disclosure of search result information, transparent price disclosure, and popularity indicators. Notably, the OECD Consumer Policy Committee is developing a 'Digitalization Policy Note' that includes consumer protection challenges on online platforms such as misleading consumer reviews, best practices for businesses, and response measures.

Accordingly, the Fair Trade Commission will continuously monitor international consumer policy trends and actively reflect demand discovery for consumer policies. Especially this year, to block covert consumer deception in the changing digital market and strengthen platform operators' responsibilities, a comprehensive revision of the Electronic Commerce Act will be pursued. The core is to hold platforms such as Naver, which act as intermediaries in telecommunication sales, responsible for consumer damages caused by product sales.