Republic of Korea: Issued ruling in KFTC investigation into Weverse, YG Plus, SM Brand Marketing, and JYP 360 for alleged non-compliance with Act on Consumer Protection in E-Commerce

On 9 August 2024, the Korea Fair Trade Commission (KFTC) issued a ruling against Weverse, YG Plus, SM Brand Marketing, and JYP 360 with a fine of KRW 3 million, KRW 2.5 million, KRW 2.5 million and KRW 2.5 million, respectively, for non-compliance with the Electronic Commerce Act. The ruling highlighted that the Act mandates a minimum withdrawal period of 7 days or 3 months for defective goods, clear specification of supply times, and prohibits arbitrary restrictions on withdrawal rights. The KFTC concluded that the businesses set shorter withdrawal periods than legally required, refused refunds without video proof of unboxing and failed to provide clear information on product availability. The KFTC required the companies to change their practices to comply with the provisions of the Act.