KFTC Reviews Terms of Top 3 Talent Marketplaces
26 Unfair Clauses Across 10 Types Corrected
The three leading domestic talent marketplace platforms that mediate talent transactions in South Korea were found by the Korea Fair Trade Commission (hereinafter "KFTC") to have unfair clauses in their terms and conditions, and have voluntarily corrected them.
On October 9, the KFTC announced that after reviewing the terms and conditions of Soomgo (Brave Mobile), Kmong, and Tal-ing, it found a total of 26 unfair clauses across 10 types, including exemption from intermediary responsibility, shifting liability for personal information breaches, and restrictions on monetary rights. The commission requested voluntary correction of these clauses. Talent marketplaces are services that connect individuals who wish to provide services using their skills, knowledge, and experience to those willing to pay for them.
The Korea Fair Trade Commission announced on the 9th that after reviewing the terms and conditions of Soomgo, Kmong, and Tal-ing, it found a total of 26 unfair clauses across 10 types and requested voluntary correction. Yonhap News
The investigation found that Kmong had nine types of unfair clauses out of the ten identified, Soomgo had six, and Tal-ing had four. All three companies included broad exemption clauses such as "no warranties are provided" and "the company is not liable for user damages" in their terms and conditions. The KFTC required the companies to revise their terms so that, instead of blanket exemptions, the companies would bear certain responsibilities in cases of intent or gross negligence.
Correction of Exemption from Intermediary Responsibility and Shifting Liability for Personal Data Breaches
Soomgo and Kmong had clauses that shifted liability for damages caused by personal data breaches onto customers. The KFTC required the companies to revise their terms so that they would not be exempt from liability in cases where the company was at fault. Additionally, both companies had clauses that restricted customers' monetary rights regarding refunds for service payments and withdrawals of earnings. In order to restrict monetary rights, there must be legitimate reasons; however, these companies used broad and vague terms such as "unavoidable reasons" or "other reasons."
Soomgo was also found to have an unfair clause that refused to refund customers' stored cyber money upon contract termination. Other problematic clauses included those that restricted customers' rights under the law and allowed the company to unilaterally delete members' posts; these were also corrected.
The KFTC stated, "It is significant that we have protected the rights and interests of professionals and consumers by correcting unfair terms and conditions on major talent marketplace platforms," adding, "We expect that rectifying these unfair practices will help foster a healthy ecosystem."
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