On May 2, 2025, the Korea Fair Trade Commission (the "KFTC") announced its decision to issue a corrective order and impose a fine of KRW 6 million (about USD 4,200) against Meta Platforms, Inc. ("Meta") for its failure to fulfill statutory obligations as an electronic bulletin board service provider under Article 9-2 of the Act on Consumer Protection in Electronic Commerce, etc. (the "E-Commerce Act").
The KFTC determined that, although large numbers of users are selling goods or facilitating sales through posts on Instagram and Facebook, Meta failed to: (i) provide guidance to businesses engaged in mail-order sales regarding statutory compliance; (ii) establish a mechanism to assist consumers in seeking relief when disputes arose between such businesses and consumers; (iii) set out its legal responsibilities in its terms and conditions; and (iv) verify sellers' essential identifying information, such as business name, representative's name, address, and telephone number.
This marks the first KFTC decision following a formal deliberation since the introduction of obligations for electronic bulletin board service providers under the E-Commerce Act in 2016 and the measure aligns with the global trend toward strengthening accountability for digital platforms. The KFTC noted that, as social media platforms have evolved beyond mere communication tools to major online distribution channels, platforms must assume shared responsibility for consumer protection rather than merely acting as online venue providers.
Source: Korean language press release section of the KFTC's
website
(
https://www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=2&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46055)
Original published by Practical Law.
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