Act. nº 6687, March 30, 2002. Consumer Protection Act on Electronic Transaction, Mar. 30, 2002 (Amended by Act nº 7315, Dec. 31, 2004; Act nº 7344, Jan. 27, 2005; Act nº 7487, Mar. 31, 2005; Act nº 8538, Jul. 19, 2007; Act nº 8635, Aug. 3, 2007; Act nº 10172, Mar. 22, 2010; Act nº 10303, May 17, 2010; Act nº 11326, Feb. 17, 2012; Act nº 11461, jun. 1, 2012).
ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE, ETC.
Article 1 (Purpose)
The purpose of this Act is to protect the rights and interests of consumers by prescribing matters relating to the fair trade of goods or services by means of electronic commerce transaction, mail order, etc. and to contribute to the sound development of national economy by enhancing market confidence.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows: (Amended by Act nº 11461, Jun. 1, 2012)
1. The term “electronic commerce transaction” means conducting commercial activities by means of electronic commerce (referring to the electronic commerce as defined in subparagraph 5 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply);
2. The term “mail order” means providing information on the sale of goods or services (including the right to use a specific facility or to be provided with services; hereinafter the same shall apply) by means of mail, telecommunications or other methods prescribed by Ordinance of the Prime Minister and selling goods or services (hereinafter referred to as “goods, etc.”) after receiving a consumer’s order: Provided, That sale by telemarketing as defined in subparagraph 3 of Article 2 of the Door-to-Door Sales, etc. Act shall be excluded from the scope of mail order;
3. The term “mail order distributor” means a person who conducts sales by mail order as a business, or other person who is engaged in the mail order business in accordance with a contract with the former;
4. The term “mail order brokerage” means the act of intermediating mail order between both parties to a transaction by allowing the use of a cybermall (referring to a virtual shopping mall established to transact goods, etc. by using computers, etc. and information communications facilities; hereinafter the same shall apply), or by other methods prescribed by Ordinance of the Prime Minister;
5. The term “consumer” means any of the following persons:
(a) A person who consumes (including using; hereinafter the same shall apply) goods, etc. supplied by the business operators for everyday consumption;
(b) A person prescribed by Presidential Decree, who is not the one provided for in item (a) but conducts transactions virtually on the same standing and conditions as the one provided for in item (a);
6. The term “business operator” means a person who manufactures (including processing or packaging; hereinafter the same shall apply), imports, or sells goods or provides services.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 3 (Exclusion of Application)
(1) The provisions of this Act shall not apply to any transaction in which a business operator (excluding a multi-level salesman as defined in subparagraph 6 of Article 2 of the Door-to-Door Sales, etc. Act; hereafter the same shall apply in this paragraph) buys for the purpose of commercial activity: Provided, That this shall not apply where the transaction is actually conducted under the same terms of transaction as other consumers in the capacity of consumer despite being a business operator.
(2) The provisions relating to the duty to deliver documents (including electronic documents; hereinafter the same shall apply) on the contents of the contract pursuant to Article 13 (2) shall not apply to the following transactions: Provided, That in the case falling under subparagraph 1, the contents or the methods of delivery of the documents on the contents of contract may be made differently, as prescribed by Ordinance of the Prime Minister:
1. Transactions that the consumers conduct at any time in accordance with the already familiar terms and conditions, or standard methods of transaction, which are prescribed by Ordinance of the Prime Minister;
2. Transactions stipulated in other Acts (excluding the Civil Act and the Door-to-Door Sales, etc. Act) that the duty, etc. to deliver a contract document shall be fulfilled by a method different from the ones provided for in this Act.
(3) Articles 13 through 15 and 17 through 19 shall not apply to a mail order distributor conducting the mail order brokerage between persons, other than mail order distributors.
(4) Articles 12 through 15, 17 through 20, and 20-2 shall not apply to the transactions of securities by investment traders and investment brokers under the Financial Investment Services and Capital Markets Act, transactions of financial instruments by financial companies, etc. prescribed by Presidential Decree, and transactions for sale of daily necessities, food, beverage, etc. in the neighborhood.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 4 (Relations with other Acts)
Where this Act and other Acts are conflicting with each other in the consumer protection in the electronic commerce transactions or mail orders, this Act shall apply in preference: Provided, That where the application of other Acts is advantageous to consumers, such Acts shall apply.
(Article Amended by Act nº 11326, Feb. 17, 2012)
CHAPTER II.- ELECTRONIC COMMERCE TRANSACTIONS AND MAIL ORDERS
Article 5 (Utilization of Electronic Documents)
(1) Notwithstanding Article 6 (2) 2 of the Framework Act on Electronic Documents and Transactions, where a business operator fails to send an electronic document (referring to the electronic message as defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply) to the address (referring to the data processing system as defined in subparagraph 2 of Article 2 of the Framework Act on Electronic Documents and Transactions) designated beforehand in the agreement to make a transaction by means of electronic document), the business operator shall not assert his/her right out of such electronic document: Provided, That this shall not apply to cases prescribed by Presidential Decree, such as where it is of great urgency, the consumer also already anticipates the transaction shall be made by an electronic document, or the consumer has already printed the electronic document. (Amended by Act nº 11461, Jun. 1, 2012)
(2) Where a business operator intends to use an electronic document with a digital signature (referring to the digital signature as defined in subparagraph 2 of Article 2 of the Digital Signature Act; hereinafter the same shall apply), he/she shall notify the consumer of the validity, procedures and methods necessary for receipt, etc. of the relevant electronic document, as prescribed by Presidential Decree.
(3) In using electronic documents, a business operator shall neither compel (including de facto compulsion of any specific digital signature due to employment of special standards, etc.) the consumer to use a specific method of digital signature, and nor unreasonably limit the use of a certain method of digital signature chosen by the consumer.
(4) Where a business operator who conducts electronic commerce transactions makes it possible for a consumer to join a membership, to subscribe for a contract, or to provide information related to the consumer, etc. through an electronic document, he/she shall also make it possible to withdraw a membership, cancel an order, terminate, revoke or change a contract, or withdraw consent to the provision and use of information, etc. through an electronic document.
(5) If a business operator who conducts electronic commerce transactions is requested by a consumer to provide confirmation or certification concerning the transaction of goods, etc. through an electronic document, he/she shall comply with such request.
(6) Paragraphs (4) and (5) shall not apply where a business operator who conducts electronic commerce transactions notifies consumers beforehand of the difficulty of providing electronic documents due to any apparent technical or security reason.
(7) When a business operator who conducts electronic commerce transactions fulfills the obligations under paragraphs (4) and (5), business operators who are related to the establishment and operation of the relevant cybermall shall cooperate with him/her by taking measures for fulfilling such obligations or other necessary measures therefor.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 6 (Preservation, etc. of Transaction Records)
(1) A business operator shall preserve the records on transactions, such as marks, advertisements in the electronic commerce transactions and mail orders, contents of contracts and execution thereof, for a substantial period of time. In such cases, an easy way of perusal and maintenance for consumers shall be provided.
(2) Notwithstanding the provisions of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and other Acts related to the protection of personal information prescribed by Presidential Decree, a business operator may preserve the transaction records that he/she is liable to preserve under paragraph (1), and personal information (limited to the information to identify the subject of a transaction, such as name, address and resident registration number) relating thereto, even if the consumer withdraws consent to the use of personal information.
(3) Necessary matters regarding the object, scope, and period of transaction records to be preserved by a business operator under paragraph (1) and methods of perusal and maintenance made available to consumers shall be prescribed by Presidential Decree.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 7 (Prevention of Errors in Manipulation, etc.)
A business operator shall prepare procedures necessary for the confirmation and correction of contents, before the time of imposition of transaction amount or the placement of an order by a consumer, in order to prevent damage caused by discrepancies, etc. in the declaration of will due to consumer’s error in manipulation, etc. in the electronic commerce transaction.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 8 (Securing Confidence in Electronic Payment)
(1) Where a business operator uses an electronic means prescribed by Presidential Decree in the payment of transaction amount (hereinafter referred to as “electronic payment“), the persons related with the electronic payment who are prescribed by Presidential Decree, such as the business operator, issuer of means of electronic settlement and provider of electronic settlement service (hereinafter referred to as “electronic settlement business operator, etc.”) shall take measures necessary for maintaining security of the relevant information.
(2) Where an electronic payment is made, the business operator, electronic settlement business operator, etc. shall clearly notify the following matters to confirm whether the consumer’s intent of subscription is the declaration of his/her true will and shall prepare procedures for the consumer to confirm the notified matters, as prescribed by Presidential Decree:
1. Contents and kind of goods, etc.;
2. Prices of goods, etc.;
3. Service period.
(3) Where an electronic payment is made, the business operator, electronic payment business operator, etc. shall notify the consumer of such fact by a method prescribed by Ordinance of the Prime Minister, such as transmission of an electronic document, and make the consumer’s perusal of data on the electronic payment available at any time.
(4) An issuer of the means of settlement by way of making advance payment of the price for the purchase or use of goods, etc. as means of electronic payment used in a cybermall shall indicate or announce matters regarding the confirmation of confidence of such means of payment, restriction on the use, or other matters that require attention, as prescribed by Ordinance of the Prime Minister.
(5) Where a dispute between a business operator and a consumer arises on the electronic settlement, the electronic settlement business operator, etc. shall cooperate with the settlement of such dispute by allowing the perusal, etc. of the information regarding payment, as prescribed by Presidential Decree.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 9 (Cooperation of Delivery Business Operators, etc.)
(1) A business operator who conducts delivery (including electronic transmission through the information communications network (hereinafter referred to as “information communications network“) pursuant to Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.) of goods, etc. consequent upon electronic commerce transaction or mail order, shall cooperate in the settlement of dispute, as prescribed by Presidential Decree, if a dispute arises out of an accident or obstruction, etc. of delivery.
(2) Where a person who provides hosting services (referring to the services for the establishment of cybermalls, management of servers, etc. for business operators to conduct electronic commerce transactions; hereafter the same shall apply in this Article) concludes a contract for the use of hosting services with a business operator, he/she shall take measures for confirming the personal identity of the business operator.
(3) Where any dispute arises between a business operator and a consumer, a person who provides hosting services shall, upon request of any of the following persons, shall cooperate for the settlement of such disputes by providing the data prescribed by Presidential Decree, such as personal identification information of the business operator:
1. The Fair Trade Commission;
2. Any of the Special Metropolitan City Mayor, Metropolitan City Mayors, Do Governors or the Governor of a Special Self-Governing Province (hereinafter referred to as “Mayor/Do Governor“) or the head of a Si/Gun or Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply);
3. An investigation agency;
4. The consumer who is a party to the dispute;
5. Other entities prescribed by Presidential Decree as necessary for settlement of dispute.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 10 (Operation of Cybermalls)
(1) The operator of a cybermall conducting the electronic commerce transaction shall indicate the following matters, as prescribed by Ordinance of the Prime Minister, so that consumers can easily identify the business operator’s identity, etc.:
1. Trade name and name of the representative;
2. Address of the location of the business place (including the address where consumer’s complaint can be settled);
3. Telephone number and e-mail address;
4. Business registration number;
5. Contractual terms and conditions of service of the cybermall;
6. Other matters prescribed by Presidential Decree as necessary for consumer protection.
(2) The operator of a cybermall provided for in paragraph (1) shall cooperate in the measures necessary for correction in the part where the operator should take measures, if any violation of this Act is committed in the cybermall.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 11 (Utilization, etc. of Information on Consumers)
(1) When a business operator collects or utilizes information (including provision of such information to a third party; hereinafter the same shall apply) on consumers for an electronic commerce transaction or mail order, he/she shall fairly collect or utilize it pursuant to the relevant provisions, such as the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.
(2) Where property damage occurs to consumers or any special grounds exist for the possibility of occurrence of such damage due to fraudulent use of information on consumers in the transaction of goods, etc., the relevant business operator shall take necessary measures prescribed by Presidential Decree, such as verification of the person himself/herself or recovery from damage.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 12 (Reporting, etc. by Mail Order Distributors)
(1) A mail order distributor shall file a report on each of the following matters to the Fair Trade Commission, a Special Metropolitan City Mayor, or the head of a Si/Gun/Gu, as prescribed by Presidential Decree: Provided, That this shall not apply where the frequency, scale, etc. of mail order transactions falls below the criteria determined by the Fair Trade Commission in a public notification:
1. Trade name (including the name and resident registration number of the representative in the case of a corporation), address, and telephone number;
2. E-mail address, Internet domain name, and location of host server computers;
3. Other matters prescribed by Presidential Decree as necessary for the verification of identity of the business operator.
(2) Where a mail order distributor intends to modify the matters reported pursuant to paragraph (1), he/she shall report thereon, as prescribed by Presidential Decree.
(3) When a mail order distributor who has filed a report pursuant to paragraph (1) suspends or closes his/her business, or resumes his/her business after suspension, he/she shall report thereon, as prescribed by Presidential Decree.
(4) The Fair Trade Commission may make public the information on the mail order distributor who has filed a report pursuant to paragraph (1), as prescribed by Presidential Decree.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 13 (Provision of Information on Identity and Terms of Transaction)
(1) In placing indications or advertisements to take orders for transaction of goods, etc., a mail order distributor shall include therein each of the following matters:
1. Trade name and name of the representative;
2. Address, telephone number and e-mail address;
3. Matters by which the fact of reporting can be verified, such as the number of a report filed with the Fair Trade Commission, a Special Metropolitan City Mayor, or the head of a Si/Gun/Gu under Article 12 and the name of the agency which has accepted such report.
(2) A mail order distributor shall indicate, advertise, or notify the following matters in an appropriate manner so that the consumers can understand the terms of transaction of goods, etc. accurately before concluding a contract and make such a deal without any error or discrepancy, and, if the contract is concluded, issue documents stating the following matters regarding the contents of such contract to the other party of the contract before supplying the goods, etc.: Provided, That where any ground prescribed by Presidential Decree exists, the documents may be issued to a person who receives the goods, etc. in lieu of the other party to the contract to the extent that does not infringe upon the rights of the latter:
1. Trade names of the supplier and seller of the goods, and names, addresses, telephone numbers, etc. of representatives thereof;
2. Name, kind and contents of the goods, etc.;
2-2. Matters concerning the information on the goods, etc. In such cases, the description marked on the product may substitute the written description on the contents of contract;
3. Price (where the price is not decided, detailed method of decision thereof) of the goods, etc., method of payment and time to make payment;
4. Method and date of supply of the goods, etc.;
5. Matters regarding the time limit, method of excercise, and effect, of cancellation of an order or revocation of a contract (hereinafter referred to as “cancellation, etc. of an order“) (including forms necessary for exercising the right to withdraw an order, etc.);
6. Exchange, return and guarantee of the goods, etc., terms and procedures of refund thereof, and the payment of the compensation for delay of the refund;
7. Technical matters necessary for the electrical transmission, installation, etc. of the goods, etc. which can be supplied by means of electronic medium;
8. Matters concerning handling of compensation to consumers’ damage, settlement of complaint on the goods, etc. and settlement of dispute between consumers and business operators;
9. Terms and conditions of the transaction (including the ways to verify the details of such terms and conditions);
10. Fact that the consumer may choose to deposit funds for settling the price of goods, etc. with a third party prescribed by Presidential Decree until he/she is supplied with the goods, etc. (hereinafter referred to as “escrow system“) or to require the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance under Article 24 (1) for the purpose of securing the safety of purchase (limited only to the prepaid mail order under Article 15 (1) and excluding a transaction falling under any subparagraph of Article 24 (3));
11. Other terms of transaction that may affect the consumer’s decision on the purchase or other matters prescribed by Presidential Decree as necessary for the relief of damage to consumer.
(3) When a mail order distributor concludes a contract on the transaction of goods, etc. with a minor, he/she shall inform the minor of the fact that if his/her legal representative does not agree to the contract, the minor himself/herself or his/her legal representative can cancel the contract.
(4) The Fair Trade Commission may determine and publicly notify the matters concerning the trade name, etc. of mail order distributors under paragraphs (1) and (2), the matters concerning the information on goods, etc. and contents and methods of indication, advertisement and announcement of the terms of transaction. In such cases, methods of indication, advertisement and announcement may be determined differently in consideration of the method of transaction or the characteristics of the goods, etc.
(5) A mail order distributor shall execute conscientiously with honor the terms of transaction indicated, advertised, or announced to the consumers pursuant to paragraph (2).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 14 (Confirmation, etc. of Orders)
(1) A mail order distributor shall promptly notify the consumer of the information regarding the confirmation of receipt of the declaration of will of order, and possibility of sale, if he/she takes an order from a consumer regarding the transaction of goods, etc.
(2) A mail order distributor shall have the adequate procedures that enable consumers to confirm, correct or cancel the contents of order before concluding a contract.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 15 (Supply, etc. of Goods, etc.)
(1) A mail order distributor shall take measures necessary for the supply of goods, etc. within seven days from the day the consumer orders, and, in the case of a mail order for which the consumer pays all or part of the price of such goods, etc. before being supplied with them (hereinafter referred to as “prepaid mail order“), he/she shall take measures necessary for the supply of the goods, etc. within three business days from the day the consumer pays all or part of the price: Provided, That this shall not apply where there is a separate agreement upon the supply timing of goods, etc. between the consumer and the mail order distributor.
(2) When finding difficulties in the supply of ordered goods, etc., a mail order distributor shall inform the consumer of the reason without delay, and, in the case of a prepaid mail order, refund the price or take the measures necessary for refund within three business days from the day the consumer pays all or part of the price.
(3) A mail order distributor shall take adequate measures so that consumers can confirm the supply procedure of goods, etc. and the processing status. In such cases, the Fair Trade Commission may determine and publicly notify matters necessary for such measures.
(4) Article 18 (1) through (5) shall apply mutatis mutandis to refunding or taking necessary measures for refund in the prepaid mail order under paragraph (2).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 16 Deleted (By act nº 7487, Mar. 31, 2005)
Article 17 (Cancellation, etc. of Orders)
(1) A consumer who has concluded a contract with a mail order distributor on the purchase of goods, etc. may cancel, etc. the order relating to the relevant contract within the period provided for in the following subparagraphs (referring to the period agreed by the parties to a transaction, if it exceeds the period prescribed in the following subparagraphs):
1. Seven days from the day a document on the contents of the contract provided for in Article 13 (2) was received: Provided, That where the supply of the goods, etc. has been performed later than the delivery of document, seven days from the day the goods, etc. have been supplied, or the supply of the goods, etc. has begun;
2. Where a document on the contents of a contract provided for in Article 13 (2) has not been handed over, a document not stating the address, etc. of the mail order distributor has been received, or the cancellation, etc. of order cannot be made within the period of subparagraph 1 due to the change of address of the mail order distributor or other reasons, seven days from the day he/she knew or he/she could have known the address.
(2) In any of the following cases, no consumer is entitled to cancel the order, etc. under paragraph (1) contrary to the will of a mail order distributor: Provided, That when the mail order distributor fails to take the measures under paragraph (6), the consumer may cancel the order, etc. even in cases falling under subparagraphs 2 through 4:
1. Where the goods, etc. have been destroyed or damaged due to a cause attributable to the consumer: Provided, That this shall not apply where the package, etc. has been damaged to confirm the contents of the goods, etc.;
2. Where the value of the goods, etc. has substantially decreased due to a cause attributable to the consumer;
3. Where the value of the goods, etc. has substantially decreased as to cause difficulty in resale due to the elapse of time;
4. Where the package of the reproducible goods, etc. has been destroyed;
5. Other cases prescribed by Presidential Decree for the safety of the transaction.
(3) Notwithstanding paragraphs (1) and (2), where the contents of the goods, etc. are different from the contents of indication or advertisement, or have been performed contrary to the contents of the contract, the consumer may cancel the order, etc. within three months from the day the goods, etc. have been supplied, or within 30 days from the day he/she knew or could have known the fact.
(4) Where the cancellation, etc. of order pursuant to paragraph (1) or (3) are made in writing, the declaration of will shall come into force on the day the document bearing the declaration of will was sent.
(5) In applying paragraphs (1) through (3), if a dispute arises as to whether the consumer is responsible for the damage to the goods, etc., whether and when the contract on the purchase of the goods, etc. was signed, and whether and when the goods, etc. were supplied, the mail order distributor shall testify it.
(6) In the case of the goods, etc. that are impossible to cancel the order thereof under paragraphs (2) 2 through 4, a mail order distributor shall employ the methods, such as writing expressly the fact on the package of the goods, etc. or a place where the consumer can easily recognize, or supplying test goods, or other methods, and take necessary measures not to encumber the exercise of right to cancel, etc. the order.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 18 (Effect of Cancellation, etc. of Orders)
(1) Where a consumer has performed the cancellation, etc. of an order pursuant to Article 17 (1) or (3), he/she shall return goods, etc. already supplied to him/her.
(2) A mail order distributor (including a person who has been paid the price of goods, etc., or a person who has concluded a contract on mail order with a consumer; hereafter in paragraphs (2) through (10), the same shall apply) shall refund the price of goods, etc., which was already paid, within three business days from the date he/she has received the returned goods, etc. In such cases, if the mail order distributor delays the refund of the price of the goods, etc. to the consumer, the mail order distributor shall pay interest on delay calculated by multiplying a delayed period by the interest rate prescribed by Presidential Decree within 40 percentage per annum (hereinafter referred to as “compensation for delay“), taking into consideration an overdue interest rate applied by banks under the Banking Act and economic situation.
(3) In refunding the price of goods, etc. pursuant to paragraphs (1) and (2), when a consumer has paid the price of goods, etc. with a credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act, or other means of settlement prescribed by Presidential Decree, a mail order distributor shall promptly request a business operator who has supplied the relevant means of settlement (hereinafter referred to as “settlement business operator“) to stop or cancel the request for the price of the goods, etc.: Provided, That if the mail order distributor has already received the price of the goods, etc. from the settlement business operator, he/she shall promptly refund it to the settlement business operator, and notify the consumer of this fact.
(4) A settlement business operator who has received the refund of the price of goods, etc. pursuant to the proviso to paragraph (3) shall promptly refund it to a relevant consumer or take measures necessary to refund.
(5) A mail order distributor who falls under the proviso to paragraph (3) and who had a consumer pay a price due to a delayed refund, shall pay compensation for delay for the delayed period to the consumer.
(6) Notwithstanding the proviso to paragraph (3), where a mail order distributor fails to refund a price to a settlement business operator without any justifiable ground, a consumer may request the settlement business operator to offset the amount to be refunded by other debt he/she owes to the relevant mail order distributor. In such cases, the settlement business operator may offset by other debt that he/she owes to the relevant mail order distributor, as prescribed by Presidential Decree.
(7) Where a settlement business operator delays an offset under paragraph (6) without any justifiable ground, the consumer may refuse to settle the price to the settlement business operator. In such cases, neither mail order distributor nor the settlement business operator shall do any act that gives disadvantage to the consumer, such as dealing the relevant consumer as a person who fails to fulfill his/her obligation within an agreed period because of the refusal of such settlement.
(8) In cases falling under paragraph (1) where goods, etc. have already been partially used or consumed, a mail order distributor may request a consumer to pay the amount within the extent prescribed by Presidential Decree equivalent to the profit the consumer gained by use or consumption of part of the goods, etc., or equivalent to the expense incurred in the supply of the goods, etc.
(9) In cases of cancellation, etc. of an order under Article 17 (1), the expense incurred in returning supplied goods, etc. shall be borne by a consumer and a mail order distributor shall not request the consumer either the penalty for breach of contract, or compensation for damage.
(10) In cases of cancellation, etc. of an order under Article 17 (3), the expense incurred in returning goods, etc. shall be borne by a mail order distributor.
(11) Where a mail order distributor, a person who has been paid the price of goods, etc., or a person who has concluded into a contract on a mail order with a consumer is not the same person, each one shall be liable jointly and severally to the fulfillment of obligation relating to the refund of the price of the goods, etc. pursuant to paragraphs (1) through (7) consequent upon the cancellation, etc. of an order pursuant to Article 17 (1) and (3).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 19 (Restriction, etc. on Amount of Compensation for Damage)
(1) Where a contract on the sale of goods, etc. is cancelled due to a cause attributable to the consumer, the compensation for damage the mail order distributor claims against the consumer shall not exceed the amount computed by adding the compensation for delay following the nonpayment of price to the amount classified in the following:
1. Where the supplied goods, etc. are returned: The amount whichever is bigger between the following items:
(a) The usual rental fee of the returned goods, etc. or the amount equivalent to the usual benefit from the use of them;
(b) The amount computed by subtracting the price of the returned goods, etc. at the time of return from the selling price of the goods, etc.;
2. Where the supplied goods, etc. are not returned: The amount equivalent to the selling price of the goods, etc.
(2) In order to smoothly resolve disputes following the claim on the compensation for damage between mail order distributors and consumers, the Fair Trade Commission may, if necessary, determine and publicly notify the standards to calculate the compensation amount for damage pursuant to paragraph (1).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 20 (Announcement, Provision of Information, etc. by Mail Order Brokers)
(1) Each mail order broker shall announce beforehand the fact that he/she is not a party to the mail order, in the manner prescribed by Ordinance of the Prime Minister for consumers to easily recognize it.
(2) If a person who has requested the mail order brokerage (hereinafter referred to as “requester of mail order brokerage“) is a business operator, a mail order broker who is a mail order distributor shall confirm the name (where the business operator is a corporation, the name thereof and the name of its representative), address, telephone number and other matters prescribed by Presidential Decree, and provide them to consumers before concluding an order, and if a requester of mail order brokerage is not a business operator, he/she shall confirm the name, telephone number and other matters prescribed by Presidential Decree and provide each party to the transaction with the method to inspect the information on the other party.
(3) In order to resolve complaints or disputes occurring from the use of cybermalls, etc., a mail order broker shall find out the cause thereof, comprehend damage and take other necessary measures promptly. Detailed contents and method, etc. of measures to be taken in such cases shall be prescribed by Presidential Decree.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 20-2 (Responsibility of Mail Order Brokers and Requesters of Mail Order Brokerage)
(1) Where a mail order broker fails to make an announcement under Article 20 (1), he/she shall be jointly responsible with the requester of mail order brokerage for the compensation for the damage caused intentionally or negligently by the latter to the consumer’s property.
(2) A mail order broker shall be jointly responsible with the requester of mail order brokerage for the compensation for the damage caused to the consumer’s property by failing to provide information or a method to inspect information under Article 20 (2), or by providing untruthful information: Provided, That this shall not apply where he/she has paid due attention to prevent any damage to the consumers.
(3) Notwithstanding an announcement made under Article 20 (1), no mail order broker who is a mail order distributor shall be exempted from the responsibilities of a mail order distributor provided for in Articles 12 through 15, 17 and 18: Provided, That in conducting mail order brokerage on the mail order distributor’s request, the requester shall be responsible for the part agreed and announced to the consumer that the requester shall take the responsibility for such part.
(4) No requester of mail order brokerage (limited to business operators) shall be exempted from the damage caused intentionally or negligently by a mail order broker to the consumer’s property on the ground that the act has been done by the latter: Provided, That this shall not apply where he/she has paid due attention to prevent any damage to the consumers.
(Article Inserted by Act nº 11326, Feb. 17, 2012)
Article 21 (Prohibited Acts)
(1) Neither a business operator who conducts electronic commerce transactions nor a mail order distributor shall do any of the following acts:
1. Inducing or making a deal with consumers or interfering with cancellation, etc. of orders or termination of contracts by telling falsehood or exaggerated fact or using deceptive methods;
2. Changing or closing the address, telephone number, Internet domain name, etc. with the purpose of interfering with cancellation, etc. of orders;
3. Neglecting deficiency of human resources needed to resolve disputes or complaints, or lack of facilities as it stands for a considerable time, thereby inflicting damage on consumers;
4. Unilaterally supplying the goods, etc. without the consumer’s order and requesting the price thereof, or requesting only the price of the goods, etc. without supplying the goods, etc.;
5. Enforcing the consumer to buy goods or to receive services through telephone, facsimile, computer communications, electronic mail, etc. even though the consumer made clear that he/she had no intention to buy the goods or receive the services;
6. Using the information on a consumer without obtaining consent from the relevant person, or beyond the extent of such consent: Provided, That any of the following cases shall be excluded:
(a) Cases prescribed by Presidential Decree as inevitable for the execution of the contract with the consumer, such as delivery of the goods, etc.;
(b) Cases where such act is necessary for the settlement of accounts following the transaction of the goods, etc.;
(c) Cases prescribed by Presidential Decree as necessary for the confirmation of the person himself/herself to prevent any illegal use;
(d) Cases where any inevitable causes provided for in the provisions of the Act or in any Act exist;
7. Making computer programs, etc. installed without the consumer’s consent or without explanation and announcement to the consumers in an easy and distinctive way in accordance with the method prescribed by Ordinance of the Prime Minister.
(2) To prevent violations of this Act and damage to consumers, the Fair Trade Commission may determine and publicly notify the standards that the business operators of electronic commerce transaction or mail order distributor should observe.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 22 (Execution, etc. of Affairs Related to Cancellation, etc. of Orders during Closure, etc. of Business)
(1) A mail order distributor shall continue the business of cancellation, etc. of orders under Article 17 (1) and (3), and the business related to the refund of price following the cancellation, etc. of order under Article 18 (1) through (5) even during closure or suspension of business.
(2) Where a mail order distributor is deemed unable to practically continue business due to being declared bankrupt, etc. without reporting the closure of business, the Fair Trade Commission or the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu who has accepted reports filed under Article 12 (1) may cancel the reported matters ex officio.
(Article Amended by Act nº 11326, Feb. 17, 2012)
CHAPTER III.- PROTECTION OF CONSUMERS’ RIGHTS AND INTERESTS
Article 23 (Formulation, etc. of Consumer Protection Guidelines in Electronic Commerce Transactions, etc.)
(1) The Fair Trade Commission may hear the opinions of the parties to transactions, agencies and organizations of the related fields, and formulate guidelines (hereinafter referred to as “consumer protection guidelines“) to induce the spontaneous observance of business operator for the sound transaction order and consumer protection in the execution of electronic commerce transactions or mail orders.
(2) Where the terms and conditions of a contract that the business operator employs are more disadvantageous to the consumers than the contents of consumer protection guidelines, the business operator shall indicate or announce the terms and conditions of the contract formulated differently from the consumer protection guidelines so that the consumers can easily recognize them.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 24 (Contracts, etc. of Consumer Damage Compensation Insurance)
(1) The Fair Trade Commission may encourage the related business operators to conclude any of the following contracts (hereinafter referred to as “contract, etc. of consumer damage compensation insurance“) for the purpose of consumer protection in the electronic commerce transaction or mail order: Provided, That the issuer of settlement referred to in Article 8 (4) shall conclude a contract, etc. of consumer damage compensation insurance:
1. An insurance contract under the Insurance Business Act;
2. A contract of guarantee for payment against debt with the institution under Article 38 of the Act on the Establishment, etc. of Financial Services Commission to secure payment of consumer damage compensation;
3. A mutual aid contract with the mutual aid association established pursuant to paragraph (10).
(2) Notwithstanding paragraph (1), where a consumer chooses to use the escrow system under Article 13 (2) 10 or requires the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance with respect to a prepaid mail order, the mail order distributor shall allow the consumer to use such system or conclude the contract, etc. of consumer damage compensation insurance.
(3) Paragraph (2) shall not apply where a consumer performs any of the following transactions:
1. A transaction of buying goods, etc. the price of which does not exceed the amount prescribed by Presidential Decree within the limit of 100,000 won;
2. A transaction of paying the price of goods, etc. by using a credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act. In such cases, if a consumer fails to receive the goods, etc., the credit card company as defined in subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act shall cooperate for the prevention and recovery of damage to the consumer, such as cancellation of the settlement of purchase price;
3. A transaction of buying goods, etc. which are sent through information and communications networks or the forwarding of which is not confirmable by a third party referred to in Article 13 (2) 10;
4. A transaction of buying goods, etc. supplied by installments for a certain period of time;
5. Other transactions determined and publicly notified by the Fair Trade Commission as not requiring the escrow system or the conclusion of a contract, etc. of consumer damage compensation insurance or as having difficulty in the utilization of such escrow system or the conclusion of such contract because the safety of purchase is firmly secured by any other Act or there exists any other cause similar to those provided for in subparagraphs 1 through 4.
(4) Matters necessary for the use of the escrow system or the conclusion of a contract, etc. of consumer damage compensation insurance under paragraph (2) shall be prescribed by Presidential Decree.
(5) A contract, etc. of consumer damage compensation insurance shall reach an adequate level for the compensation of damage to consumers following any violation of this Act, or for securing the confidence of issuer of settlement means under Article 8 (4). In such cases, the detailed standards thereof shall be prescribed by Presidential Decree.
(6) A person who is responsible to pay the consumer damage compensation pursuant to the contract, etc. of consumer damage compensation insurance shall pay it without delay when a cause of payment arises, and, if he/she delays the payment, he/she shall pay the compensation for delay.
(7) A business operator who intends to conclude a contract, etc. of consumer damage compensation insurance shall not submit false data in submitting data on sales amount, etc. to conclude a contract, etc. of consumer damage compensation insurance.
(8) A business operator who has concluded a contract, etc. of consumer damage compensation insurance under paragraph (1) may use a mark indicating the fact, but the business operator who has not concluded such contract, etc. shall not use a mark as provided for in the former part, or make or use any other similar mark.
(9) Paragraph (8) shall apply mutatis mutandis to the use of the escrow system under paragraph (2).
(10) Business operators who conduct the electronic commerce transaction or the mail order distributors may establish a mutual aid association to protect consumers pursuant to paragraph (1). In such cases, Article 35 of the Door-to-Door Sales, etc. Act shall apply mutatis mutandis to the establishment and operation of the mutual aid association on condition that, in Article 35 (1) of the said Act, “business operators” who have filed the report under Article 5 or had each of their business registered under Article 13 shall be construed as “business operators who conduct the electronic commerce transaction or the mail order distributors” and “Article 34 (1) 3“, “Article 24 (1) 3 of the Act on the Consumer Protection in Electronic Commerce, Etc.”, and, in Article 35 (9) and (10) of the Door-to-Door Sales, etc. Act, “this Act” shall be construed as “the Act on the Consumer Protection in Electronic Commerce, Etc.”, respectively.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 24-2 (Matters to be Observed, etc. When Sending Commercial Advertisements)
(1) When a business operator or a mail order distributor does an act to solicit for the purchase of goods or being provided with services by means of telephone, facsimile, electronic mail, etc. (hereinafter referred to as “spam messages“), he/she shall comply with this Act and the provisions of related Acts, such as the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.
(2) In order to take corrective measures against a business operator conducting electronic commerce transactions or a mail order distributor who has sent spam messages in violation of paragraph (1), the Fair Trade Commission may request the Korea Communications Commission or other related agency to provide the identification information of the violator. In such cases, the request for identification information shall be allowed only where it is difficult for the Fair Trade Commission to secure the identification information of the violator, and the Korea Communications Commission or other related agency may provide the identification information of the violator to the Fair Trade Commission, notwithstanding Article 64-2 (1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 25 (Assistance to Consumer Organizations on Electronic Commerce Transactions, etc.)
The Fair Trade Commission may, within budgetary limits, assist the agencies or organizations executing the business for the establishment of fair trade order and protection of consumers’ rights and interests in the electronic commerce transactions and mail orders.
(Article Amended by Act nº 11326, Feb. 17, 2012)
CHAPTER IV.- INSPECTION AND SUPERVISION
Article 26 (Inspection, etc. Of Violations)
(1) When the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu acknowledges the fact that a violation of this Act exists, it or he/she may conduct necessary inspections ex onduc.
(2) Where a Mayor/Do Governor or the head of a Si/Gun/Gu intends to onducta n inspection pursuant to paragraph (1), in the case of the Mayor/Do Governor, such intention shall be notified to the Fair Trade Commission, and in the case of the head of a Si/Gun/Gu, such intention shall be notified to the Fair Trade Commission and the relevant Mayor/Do Governor in advance of such intention, and where the inspection, etc. Is likely to be overlapped, the Fair Trade Commission may request the Mayor/Do Governor or the head of a Si/Gun/Gu to stop such inspection. In such cases, the Mayor/Do Governor or the head of a Si/Gun/Gu who is requested to stop the inspection shall stop it unless any reasonable ground exists.
(3) Where the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu has conducted an inspection pursuant to paragraph (1) or (2), it or he/she shall notify the parties to the relevant case of the result (including the contents of disposition, where a disposition, such as an order, etc. For corrective measures is intended as a onducta the inspection) in writing.
(4) Anyone who finds a violation of the provisions of this Act may report such violation to the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu.
(5) Where five years have elapsed since the completion of a violation of this Act, the Fair Trade Commission shall neither order the corrective measures pursuant to Article 32, nor impose penalty surcharge, etc. Pursuant to Article 34 to such violation: Provided, That this shall not apply where the parties concerned have accepted but failed to execute the recommendation or arbitration of the dispute arbitration organization on the consumer damage under Article 33 (1).
(6) To onducta n inspection under paragraph (1), the Fair Trade Commission may organize an inspection team jointly with the Korea Consumer Agency established under Article 33 of the Framework Act on Consumers. In such cases, the methods and procedures for the composition of the inspection team and the inspection, and other necessary matters shall be prescribed by Presidential Decree.
(7) The Fair Trade Commission may pay allowances or travel expenses within budgetary limits to the executives and employees of the Korea Consumer Agency who participates in an inspection conducted under paragraph (6).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 27 (Search, etc. of Open Information)
(1) If necessary for securing fair trade order and preventing damage to the consumers in the electronic commerce transaction or mail order, the Fair Trade Commission may, through the use of electronic means, search and collect the open information made public via the information communications network by the business operators or organizations relating to consumer protection in the electronic commerce transaction or mail order.
(2) No business operators or related organizations shall refuse or interfere with the search and collection of information by the Fair Trade Commission conducted under paragraph (1) without any justifiable ground.
(3) If necessary for the efficient collection and use of information with respect to damage to consumers, the Fair Trade Commission may request agencies or organizations performing the businesses relating to consumer protection in the electronic commerce transaction or mail order to submit or share the relevant data, as prescribed by Presidential Decree.
(4) Agencies or organizations requested for data by the Fair Trade Commission pursuant to paragraph (3) shall not refuse to submit or share the data unless any justifiable ground exists.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 28 (Disclosure of Information on Violations, etc.)
In order to secure fair trade order and prevent damage to consumers in the electronic commerce transaction and mail order, the Fair Trade Commission may, as prescribed by Presidential Decree, disclose violations of this Act by business operators and other relevant information necessary for the prevention of damage to consumers among the information searched and collected under Article 27 (1).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 29 (Fairness of Evaluation and Authentication Business)
(1) Regardless of title, a person who operates the business of evaluation and authentication of related business operators for fairness and consumer protection in the electronic commerce transaction and mail order (hereinafter referred to as “evaluation and authentication business operator“) shall, as prescribed by Presidential Decree, announce the standards, methods, etc. of such evaluation and authentication, and conduct evaluation and authentication in an impartial manner pursuant thereto.
(2) Standards for, and methods of evaluation and authentication referred to in paragraph (1) shall be adequate to convey information on the effort and outcome exerted by the business operators for the fairness of transaction and consumer protection.
(3) The Fair Trade Commission may require the evaluation and authentication business operator to submit data on the operation state, etc.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 30 (Reporting and Supervision)
(1) Where a Mayor/Do Governor or the head of a Si/Gun/Gu recommends a correction pursuant to Article 31, in the case of the Mayor/Do Governor, the results thereof shall be reported to the Fair Trade Commission, and in the case of the head of a Si/Gun/Gu, the results thereof shall be reported to the Fair Trade Commission and the relevant Mayor/Do Governor, as prescribed by Presidential Decree.
(2) When deemed necessary for the effective enforcement of this Act, the Fair Trade Commission may request a Mayor/Do Governor or the head of a Si/Gun/Gu to conduct an inspection or confirmation, or to submit data or take other measures necessary for correction with respect to the matters under its jurisdiction. In such cases, the relevant Mayor/Do Governor or the head of the relevant Si/Gun/Gu shall comply with the request unless any special circumstance arises.
(Article Amended by Act nº 11326, Feb. 17, 2012)
CHAPTER V.- CORRECTIVE MEASURES AND IMPOSITION OF PENALTY SURCHARGES
Article 31 (Recommendation to Correct Violations)
(1) Where a business operator commits a violation of this Act or fails to fulfill his/her duty under this Act, the Fair Trade Commission, a Mayor/Do Governor, or the head of a Si/Gun/Gu may, before issuing an order to take corrective measures under Article 32, formulate a correction plan to stop such violation, or to fulfill the duty prescribed in this Act or take necessary corrective measures under Article 32, and recommend the business operator to comply with it. In such cases, the purport that accepting such recommendation shall be construed as issuing an order to take corrective measures under paragraph (3) shall also be notified.
(2) A business operator in receipt of a recommendation for correction pursuant to paragraph (1) shall notify the administration agency which has issued it whether he/she accepts it or not within ten days from the day such recommendation is received.
(3) If a business operator in receipt of a recommendation of correction pursuant to paragraph (1) accepts such recommendation, it shall be deemed that the corrective measures under Article 32 are ordered.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 32 (Corrective Measures, etc.)
(1) Where a business operator does any of the following acts or fails to fulfill a duty under this Act, the Fair Trade Commission may order him/her to take corrective measures:
1. A violation of Articles 5 (2) through (5), 6 (1), 7, 8, 9 through 11, 12 (1) through (3), 13 (1) through (3) and (5), 14, 15, 17 (1) through (3) and (5), 18, 19 (1), 20, 20-2, 22 (1), 23 (2), 24 (1), (2) and (5) through (9), 27 (2) and (4), and 29 (1) and (2);
2. Any prohibited act falling under any subparagraph of Article 21 (1).
(2) The corrective measures referred to in paragraph (1) mean any of the following measures:
1. Discontinuance of the relevant violation;
2. Fulfillment of the duty stipulated in this Act;
3. Public announcement of the fact that the corrective measures are imposed;
4. Measures necessary for the prevention and relief of damage to consumers;
5. Other measures necessary for the correction of the violation.
(3) Matters necessary for the public announcement of the fact that the corrective measures are imposed under paragraph (2) 3 and details of measures necessary for the prevention and relief of damage to consumers under paragraph (2) 4 shall be prescribed by Presidential Decree.
(4) In any of the following cases, the Fair Trade Commission may order to suspend all or part of the business for a fixed period not exceeding one year, as prescribed by Presidential Decree:
1. Where a violation is repeated despite an order to take corrective measures issued under paragraph (1);
2. Where an order to take corrective measures is not complied with;
3. Where corrective measures alone are deemed significantly impractical to prevent damage to consumers.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 33 (Requests for Arbitration of Consumer Damage Disputes)
(1) Where a request for relief relating to a violation of this Act in an electronic commerce transaction or mail order is filed by a consumer, the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu may, before making a recommendation for correction pursuant to Article 31 or taking corrective measures pursuant to Article 32, request a dispute arbitration organization on consumer damage prescribed by Presidential Decree, such as the agencies or organizations which perform the business relating to consumer protection in the electronic commerce transaction or mail order, to arbitrate the request.
(2) Where the parties concerned accept and fulfill the recommendation or arbitration prepared by a dispute arbitration organization on the consumer damage, the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu shall notify the parties concerned of the purport that the corrective measures under Article 32 shall not be taken.
(3) Where the parties concerned accept and fulfill the recommendation or arbitration of a dispute arbitration organization on the consumer damage pursuant to paragraph (1), the corrective measures under Article 32 shall not be taken, as prescribed by Presidential Decree.
(4) Where the Fair Trade Commission requests an arbitration of dispute pursuant to paragraph (1), it may subsidize the funds needed for the arbitration of dispute within budgetary limits.
(5) Where an agreement is reached in an arbitration of dispute, the dispute arbitration organization on the consumer damage shall report the result thereof, or where no agreement is reached therein, it shall report the process of arbitration, to the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu without delay.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 34 (Penalty Surcharges)
(1) Where business suspension under Article 32 (4) is deemed likely to cause serious inconvenience to consumers, etc., the Fair Trade Commission may, in lieu of the suspension of all or part of the business, impose upon the relevant business operator a penalty surcharge within the extent not exceeding the sales amount related to the violation prescribed by Presidential Decree. In such cases, if the relevant sales amount is nonexistent or impossible to calculate, etc., a penalty surcharge within the extent not exceeding 50 million won may be imposed.
(2) The Fair Trade Commission may determine and publicly notify the criteria for determination under which a penalty surcharge can be imposed in lieu of the suspension of all or part of the business.
(3) In imposing penalty surcharges pursuant to paragraph (1), the Fair Trade Commission shall deliberate on the following matters:
1. Degree of damage to consumers incurred by the relevant violation;
2. Degree of compensation effort made by the business operator on the damage to consumers;
3. Scale of profit obtained on account of the relevant violation;
4. Details, period, frequency, etc. of the relevant violation.
(4) Where a company which is the business operator who has violated this Act merges with another company, the Fair Trade Commission may impose a penalty surcharge on, and collect it from, the company surviving the merger or newly established in the course of the merger, deeming the relevant violation has been committed by such company.
(5) Articles 55-4 through 55-6 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the extension of payment deadline and payment of the penalty surcharges in installments, and disposition on collection, default and refund thereof under paragraph (1).
(Article Amended by Act nº 11326, Feb. 17, 2012)
CHAPTER VI.- SUPPLEMENTARY PROVISIONS
Article 35 (Prohibition of Contracts Disadvantageous to Consumers)
A contract that violates Articles 17 through 19 and is disadvantageous to consumers shall become void.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 36 (Exclusive Jurisdiction)
A lawsuit related to a transaction with a mail order distributor shall exclusively be governed by the district court having jurisdiction over the consumer’s address at the time of filing the lawsuit, but, in cases of nonexistence of address, the district court having jurisdiction over the consumer’s residence shall have the exclusive jurisdiction: Provided, That this shall not apply where the address or residence of the consumer at the time of filing the lawsuit is not evident.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 37 (Registration of Business Operator Organizations)
(1) Business operator organizations, established for the sound development of electronic commerce transaction and mail order, enhancement of consumers’ confidence, and promotion of mutual profit, may register at the Fair Trade Commission, as prescribed by Presidential Decree.
(2) The requirements, methods and procedures for registration under paragraph (1) and other matters shall be prescribed by Presidential Decree.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 38 (Delegation and Entrustment of Authority)
(1) Part of the authority of the Fair Trade Commission under this Act may be delegated to the heads of the agencies affiliated with it or a Mayor/Do Governor, or entrusted to the head of other administrative agency, as prescribed by Presidential Decree.
(2) Part of the authority of a Mayor/Do Governor under this Act may be delegated to the head of a Si/Gun/Gu, as prescribed by Presidential Decree.
(3) If necessary for the effective enforcement of this Act, the Fair Trade Commission may entrust part of its administrative affairs to the business operator organizations registered pursuant to Article 37 (1).
(4) Where the Fair Trade Commission entrusts part of its administrative affairs to the business operator organizations pursuant to paragraph (3), it may fully or partially subsidize expenses incurred in performing the entrusted administrative affairs within budgetary limits.
(5) Those entrusted with the administrative affairs under Article 26 (6) and paragraph (3) of this Article and perform, or have performed, the relevant affairs shall be deemed public officials for the purposes of penal provisions prescribed in Articles 127 and 129 through 132 of the Criminal Act.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 39 (Application Mutatis Mutandis of the Monopoly Regulation and Fair Trade Act)
(1) Articles 42, 43, 43-2, 44, 45 and 52 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to deliberation and decision of the Fair Trade Commission under this Act.
(2) Article 50 (1) through (4) of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the inspection, etc. of the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu on violations of this Act.
(3) Articles 53, 53-2, 54, 55 and 55-2 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to filing objections to the dispositions of the Fair Trade Commission pursuant to this Act, filing objections to the dispositions of the Mayor/Do Governor who has been delegated pursuant to Article 38, suspension of execution of orders of corrective measures, and exclusive jurisdiction of, filing of lawsuits, and lawsuits of dissatisfaction.
(4) Article 62 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the commissioners of the Fair Trade Commission, or public officials who perform or have performed the duties prescribed in this Act.
(Article Amended by Act nº 11326, Feb. 17, 2012)
CHAPTER VII.- PENAL PROVISIONS
Article 40 (Penal Provisions)
A person who fails to comply with an order to take corrective measures issued under Article 32 (1) shall be punished by imprisonment for not more than three years or by a fine not exceeding 100 million won.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 41 (Penal Provisions)
A person who carries on business in violation of a business suspension order issued under Article 32 (4) shall be punished by imprisonment for not more than two years or by a fine not exceeding 50 million won.
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 42 (Penal Provisions)
Any of the following persons shall be punished by a fine not exceeding 30 million won:
1. A person who fails to file a report or files a false report, in violation of Article 12 (1);
2. A person who uses a mark indicating the fact of having concluded a contract, etc. of consumer damage compensation insurance or of being allowed to use the escrow system, or makes or uses other similar marks, in violation of Article 24 (8) and (9).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 43 (Penal Provisions)
Any of the following persons shall be punished by a fine not exceeding ten million won:
1. A person who provides false information on the identification information of a business operator prescribed in Article 13 (1);
2. A person who provides false information regarding the terms of transaction prescribed in Article 13 (2).
(Article Amended by Act nº 11326, Feb. 17, 2012)
Article 44 (Joint Penal Provisions)
If a representative of a corporation or an agent, employee, or other servant of a corporation or an individual commits a violation under Articles 40 through 43 in connection with the business of the corporation or the individual, in addition to punishment of the violator, the corporation or individual shall be punished by a fine under each relevant Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation.
(Article Amended by Act nº 10172, Mar. 22, 2010)
Article 45 (Fines for Negligence)
(1) Any of the following persons shall be punished by a fine for negligence not exceeding ten million won:
1. A person who commits any violation falling under Article 21 (1) 1 through 5;
2. A person who, as an issuer of the settlement means under Article 8 (4), fails to conclude a contract, etc. of consumer damage compensation insurance, in violation of the proviso to Article 24 (1);
3. A person who, as a mail order distributor carrying out the prepaid mail order under Article 15 (1), violates Article 24 (2);
4. A person who, as an issuer of the settlement means under Article 8 (4), submits false data and concludes a contract, etc. of consumer damage compensation insurance, in violation of Article 24 (7);
5. A person who, as a mail order distributor carrying out the prepaid mail order under Article 15 (1), submits false data and concludes a contract, etc. of consumer damage compensation insurance, in violation of Article 24 (7);
6. A person who fails to appear on at least two occasions without any justifiable ground and violates this Act, among the parties to whom a summon is issued under Article 50 (1) 1 of the Monopoly Regulation and Fair Trade Act, which is applied mutatis mutandis under Article 39 (2);
7. A person who fails to submit a report, necessary data or things prescribed in Article 50 (1) 3 or (3) of the Monopoly Regulation and Fair Trade Act which is applied mutatis mutandis under Article 39 (2) or submits false report thereof;
8. A person who refuses, interferes with, or evades an inspection prescribed in Article 50 (2) of the Monopoly Regulation and Fair Trade Act which is applied mutatis mutandis under Article 39 (2).
(2) Any of the following persons shall be punished by a fine for negligence not exceeding five million won:
1. A person who fails to preserve the transaction records, or fails to provide the consumers with the methods of inspection and preservation of transaction records, in violation of Article 6;
2. A person who fails to indicate the information on the identity of the business operator prescribed in Article 10 (1) or 13 (1);
3. A person who fails to report under Article 12 (2) and (3);
4. A person who fails to indicate, advertise, or notify the stipulated matters or fails to hand over documents regarding the contents of contract, in violation of Article 13 (2);
5. A person who fails to inform the other party to a transaction who is a minor of the fact that a contract on the transaction of goods, etc. can be cancelled, in violation of Article 13 (3).
(3) Fines for negligence prescribed in paragraphs (1) and (2) shall be imposed and collected by the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu in accordance with the criteria prescribed by Presidential Decree.
(Article Amended by Act nº 11326, Feb. 17, 2012)
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2002.
Article 2 (Transitional Measures concerning Report, etc. of Mail Order Distributor)
(1) A person who has reported the mail order business pursuant to Article 17 of the previous Door-to-Door Sales, etc. Act shall be deemed to have reported to the Mayor/Do Governor pursuant to Article 12: Provided, That he/she shall complement the reported matters pursuant to Article 12 within two months from the enforcement of this Act
(2) The mail order distributor, who has reported on the cessation, closedown of business, restart of business after cessation, etc., at the time of enforcement of this Act, pursuant to Article 24 of the previous Door-to-Door Sales, etc. Act, shall be deemed to have reported pursuant to this Act, and where he/she intends to restart business after cessation, he/she shall report pursuant to the provisions of this Act.
Article 3 (Transitional Measures concerning Cancellation of Order)
The cancellation, effect, etc. of order, which have been made pursuant to the provisions of the previous Door-to-Door Sales, etc. Act at the time of enforcement of this Act, shall be subject to the previous provisions.
Article 4 (Transitional Measures concerning Suspension of Business)
The disposition of suspension of business due to an act before the enforcement of this Act shall be subject to the provisions of the previous Door-to-Door Sales, etc. Act.
Article 5 (Transitional Measures concerning Penal Provisions and Fine for Negligence)
The application of penal provisions and fine for negligence to an act before the enforcement of this Act shall be subject to the provisions of the previous Door-to-Door Sales, etc. Act.
Article 6 (Relations with Other Acts and Subordinate Statutes)
In case where other Acts and subordinate statutes cite the previous Door-to-Door Sales, etc. Act or the provisions thereof at the time of enforcement of this Act, they are deemed to have cited this Act or the equivalent provisions of this Act in lieu of the previous provisions, if there are provisions equivalent to the previous ones in this Act.
ADDENDA (Act nº 7315, Dec. 31, 2004)
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2005. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA (Act nº 7344, Jan. 27, 2005)
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 Omitted.
ADDENDA (Act nº 7487, Mar. 31, 2005)
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 13 (2) 10, 24 (2) through (4), and 24-2 (2) shall take effect one year after the date of its promulgation; and the amended provisions of Articles 13 (3), 17 (2) and (6), and 32 (1), three months after the date of its promulgation, respectively.
Article 2 (Applicability to Provision of Information on Identities of Mail Order Distributors and Terms of Transactions)
The amended provisions of Articles 13 (1) 3 and (2) and 32 (1) shall apply to any indication or advertisement which is put by a mail order distributor for the purpose of taking orders for transaction of goods, etc. or to the indication, advertisement, or notification of the matters regarding the terms of transaction which is made by a mail order distributor before making a contract with consumers and the hand-over of documents stating the terms of transaction regarding the contents of contract pursuant to Article 13 (2) on or after the enforcement date of this Act.
Article 3 (Applicability to Duty of Mail Order Distributors to Inform Minors)
The amended provisions of Articles 13 (3) and 32 (1) shall apply to a contract on the transaction of goods, etc. which the mail order distributor intends to conclude with a minor on or after the enforcement date of this Act.
Article 4 (Applicability to Measures for Supply of Goods, etc. and Refund of Prices by Mail Order Distributors)
The amended provisions of Article 15 (1) and (2) shall apply to any contract for transaction of goods, etc. all or part of whose price is paid by a consumer to the mail order distributor, before being supplied with them, on or after the enforcement date of this Act.
Article 5 (Applicability to Dispatch, etc. of Invoices by Mail Order Distributors)
The amended provisions of Article 16 shall apply to any goods, etc. which are supplied by a mail order distributor on a consumer’s order on or after the enforcement date of this Act.
Article 6 (Applicability to Cancellation, etc. of Orders Relating to Contracts Concluded by Consumers with Mail Order Distributors)
The amended provisions of Article 17 (2) and (6) shall apply to the cancellation, etc. of the order relating to the contract for purchase of goods, etc. which is concluded by a consumer with a mail order distributor on or after the enforcement date of this Act.
Article 7 (Applicability to Contracts, etc. of Consumer Damage Compensation Insurance Concluded by Business Operators Who are Engaged in Electronic Commerce Transactions or Mail Orders)
The amended provisions of Article 24 (1) and (10) shall apply to any contract, etc. of consumer damage compensation insurance which the Fair Trade Commission encourages a business operator engaged in the electronic commerce transaction or mail order to conclude or which is concluded by the issuer of settlement means pursuant to Article 8 (4) on or after the enforcement date of this Act.
Article 8 (Applicability to Use of Escrow System by Consumers or Conclusion of Contracts, etc. of Consumer Damage Compensation Insurance by Mail Order Distributor in Prepaid Mail Orders)
The amended provisions of Article 24 (2) through (4) shall apply to a contract on the transaction of goods, etc. with respect to which a consumer chooses to use the escrow system or requires the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance in relation to the terms of transaction of such goods, etc. on or after the enforcement date of this Act.
Article 9 (Applicability to Use of Marks on Which Mail Order Distributors Indicate Fact of Allowing Use of Escrow System)
The amended provisions of Article 24 (9) shall apply to the use of a mark on which a mail order distributor indicates the fact of allowing the use of the escrow system on or after the enforcement date of this Act.
Article 10 (Applicability to Transmission of Spam Messages)
The amended provisions of Articles 24-2 (2) and 32 (1) shall apply to spam messages which a mail order distributor sends consumers on or after the enforcement date of this Act.
Article 11 (Applicability to Recommendation of Correction of Acts of Violation)
The amended provisions of Article 31 (1) shall apply to the cases where a business operator commits an act in violation of the provisions of this Act or fails to fulfill his/her duty pursuant to the provisions of this Act on or after the enforcement date of this Act.
Article 12 (Applicability to Additional Payment for Refund of Penalty Surcharges)
The amended provisions of Article 34 (4) shall apply to the penalty surcharge which is refunded on or after the enforcement date of this Act.
ADDENDUM (Act nº 8538, Jul. 19, 2007)
This Act shall enter into force three months after the date of its promulgation.
ADDENDA (Act nº 8635, Aug. 3, 2007)
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDUM (Act nº 10172, Mar. 22, 2010)
This Act shall enter into force on the date of its promulgation.
ADDENDA (Act nº 10303, May 17, 2010)
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA (Act nº 11326, Feb. 17, 2012)
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Joint Responsibility of Mail Order Distributors)
The amended provisions of Article 20-2 (1) and (2) shall apply from the first mail order brokerage conducted after this Act enters into force.
Article 3 (Applicability to Deemed Public Officials)
The amended provisions of Article 38 (5) shall apply from the first person who conducts the entrusted administrative affairs after this Act enters into force.
Article 4 (Transitional Measures concerning Small-Scale Mail Order Distributors’ Obligation to Report)
A mail order distributor required to file a new report under the amended provisions of Article 12 (1) shall file such report within one year from the date this Act enters into force.
ADDENDA (Act nº 11461, Jun. 1, 2012)
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 10 Omitted.
