Fair Trade Commission to Accelerate Removal of Hazardous Products on 'Danggeun Market'... Initiates Self-Regulation

[Asia Economy Reporter Eunju Lee] While self-regulation is being promoted in the open market and delivery app sectors, the Fair Trade Commission (FTC) has recently begun preparing self-regulation measures to ensure consumer safety on used goods trading and resale platforms. This decision comes amid growing concerns over the distribution of products that threaten consumer safety in peer-to-peer transactions on used goods platforms such as Danggeun Market and Junggonara, making it difficult to leave consumer damages unaddressed.

According to the FTC on the 12th, the Consumer Policy Bureau recently started discussions to prepare a self-regulation plan to prevent the distribution and trading of products containing consumer hazards, together with used goods trading and resale platform operators like Danggeun Market, the Korea Consumer Agency, and consumer organizations. This initiative is separate from the self-regulation support efforts led by the Yoon Suk-yeol administration to improve contract practices in the open market and delivery app sectors and is being promoted independently by the Consumer Policy Bureau.

The FTC is preparing an agreement to be signed as a memorandum of understanding (MOU) with businesses, under which platforms will voluntarily block the distribution and sale of hazardous products and prevent their redistribution. As peer-to-peer purchases through used goods and resale platforms have increased recently, the need to prevent consumer damages caused by unsafe product distribution has grown. The FTC plans to provide businesses with lists of hazardous products shared internationally through organizations such as the OECD, enabling operators to promptly remove such items from their platforms. Since the agreement is pursued as a form of self-regulation, it will not carry legal binding force.

This measure aims to extend the achievements of the voluntary product safety agreement that the FTC signed in 2021 with five open market operators (Naver, 11st, Interpark, Coupang, and eBay Korea) to strengthen consumer safety in online product distribution, to used goods trading platforms as well. An FTC official explained, “The voluntary agreement with open market operators initiated in 2021 has been evaluated as playing a significant role in reducing consumer safety damages. This effort is intended to apply such achievements to used goods trading platforms where damage expansion is a concern.”

In a business report conducted last month, the FTC also stated, “We plan to establish voluntary dispute resolution measures with platform operators to prevent consumer damages arising from peer-to-peer transactions (C2C) such as used goods trading and resale.” Earlier, on the 9th, FTC Chairman Han Ki-jung visited the Korea Consumer Agency to receive a business plan report and emphasized efforts to strengthen consumer safety guarantees in online consumption. Chairman Han requested the Consumer Agency to detect consumer hazards early and respond proactively, stating, “The FTC will also enhance its capacity to respond to consumer safety issues while strengthening the comprehensive and coordinating role among consumer safety-related government agencies.”