Prohibition of Dark Patterns in Financial Product Sales
Four Main Categories and Fifteen Specific Types Established
Full Implementation Begins in April Next Year
The Financial Services Commission announced on the 25th that it has established guidelines to prevent financial consumer harm caused by dark patterns (online deceptive tactics) during the sale of online and non-face-to-face financial products.
Dark patterns refer to practices in which businesses, within the limited screens of online environments, induce consumers to make irrational decisions for the benefit of the business. In major countries such as the European Union (EU) and the United States, regulations are in place to prevent businesses from using dark patterns that take advantage of online characteristics to deceive consumers during online transactions. In Korea as well, regulatory authorities such as the Fair Trade Commission are significantly strengthening regulations through amendments to the Electronic Commerce Act and other measures.
Although the current "Financial Consumer Protection Act" broadly governs financial products, there have been ongoing calls for a more robust protection system as the online and non-face-to-face sales of financial products have surged in recent years. The Financial Services Commission explained that, for example, there is a possibility that regulations could be cleverly circumvented by exploiting the unique aspects of online sales, such as limited screen space, which may cause consumer confusion or carelessness. Since the existing dark pattern regulatory framework, such as the Electronic Commerce Act, is applied based on general commercial transactions, there are concerns that it may not adequately address the unique characteristics of financial product sales.
Accordingly, separate from existing laws, the Commission has established the "Dark Pattern Guidelines" to clarify specific regulations on dark patterns applicable to the financial sector.
First, the guidelines prohibit businesses from engaging in dark pattern practices that distort or infringe upon the decision-making of financial consumers, ensuring that consumers can make rational choices based on their own deliberation without misunderstanding, even within limited screens. The businesses subject to these guidelines include financial product sellers, advisory firms, and fintech companies designated as innovative financial service providers, all of whom are governed by the Financial Consumer Protection Act.
Dark patterns are classified into four main categories and 15 specific types, all of which are prohibited: (1) Misleading, (2) Obstructive, (3) Pressuring, and (4) Inducement to Misappropriation. The misleading type involves providing false information or structuring screens and sentences in ways that are entirely different from normal expectations, thereby causing consumers to make mistakes or be confused. The obstructive type induces consumers to give up rational choices by requiring excessive time, effort, or cost to collect and analyze necessary information for decision-making. The pressuring type involves psychologically pressuring consumers to take or avoid certain actions. The inducement to misappropriation type refers to cases where consumers are led to irrational or unexpected expenditures through manipulations of the interface that are difficult to detect.
The Financial Services Commission stated, "The guidelines will be implemented starting in April next year after a preparation period of about three months."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
