Fair Trade Commission: "Identity Information Must Be Disclosed if Issues Arise in Peer-to-Peer Transactions"…Companies and Users Say "Absurd"

[Asia Economy Reporter Lim Chun-han] The Fair Trade Commission's plan to require intermediary companies to disclose users' identity information such as names, addresses, and phone numbers when problems arise in consumer-to-consumer (C2C) transactions has caused confusion among both companies and users.

On the 7th, the Fair Trade Commission announced that it will publicly notify the full revision of the Act on Consumer Protection in Electronic Commerce, etc. (Electronic Commerce Act) until April 14.

As non-face-to-face transactions have become more active, the number of companies and consumers using online platforms such as portals, delivery apps, and C2C platforms has increased. The Fair Trade Commission explained that platforms are legally exempt from liability as intermediaries, so consumer damage relief is not properly carried out. Accordingly, the Fair Trade Commission drafted a revision of the Electronic Commerce Act to strengthen the consumer protection responsibilities of platform companies. The revision includes requirements such as distinguishing advertised products, displaying search and exposure criteria, and mandating damage relief application mechanisms. However, concerns have arisen because the new regulation forces intermediary companies to disclose users' identity information when problems occur in C2C transactions.

If implemented according to the revision, C2C intermediary companies like Danggeun Market will have to provide identity information to the party raising the issue when a dispute arises in personal transactions. To this end, users will have to submit their name, address, and phone number when signing up for apps like Danggeun Market. Currently, Danggeun Market is an app that only requires phone number registration. Most C2C intermediary apps allow simple registration with just a phone number or name.

The Korea Internet Corporations Association and Korea Startup Forum issued a joint statement on the same day, criticizing, "Directly providing real names, addresses, and phone numbers to the parties involved in transactions is a serious invasion of personal information and a law that can escalate disputes and cause social unrest."

They pointed out, "The Electronic Commerce Act, which should guarantee and protect consumer safety, shifts the responsibility of dispute resolution onto individuals and encourages excessive personal information infringement," and emphasized, "Dispute resolution between individuals should be handled within the legal framework by platforms and third-party dispute resolution institutions." The Korea Internet Corporations Association and Korea Startup Forum demanded a full reconsideration of the revision, accusing the Fair Trade Commission of ignoring industry opinions.