Online marketplaces required to inform vendors of country-of-origin labeling rules

Starting Thursday, online shopping platforms and other e-commerce intermediaries must inform their vendors of the legal obligation to label the country of origin on agricultural and fishery products, as well as the penalties for violations. Operators that fail to comply face fines of up to 4 million won ($3,000), depending on the number of offenses.

The Ministry of Agriculture, Food and Rural Affairs announced Tuesday that amended enforcement decrees and rules under the Act on Origin Labeling of Agricultural and Fishery Products — which spell out the notification duties of e-commerce intermediaries — take effect Thursday.

The amendments follow up on a revision to the origin-labeling law enacted in April, with the central change being that e-commerce intermediaries are now responsible for ensuring vendors understand the rules they are legally required to follow when listing products online.

Under the new rules, when an e-commerce intermediary accepts a request from a vendor to list products, it must inform the vendor of which agricultural and fishery products and processed goods require origin labeling, how to display the label, what constitutes a prohibited act such as false labeling, and what penalties apply for violations.

Platforms may choose from three methods of notification: posting the relevant information permanently on their main page or notice board and directing vendors to check it; providing a dedicated information screen where vendors can review the requirements; or notifying vendors individually by email, text message or other electronic or written means.

Fines for failing to meet the notification obligation are set at 1 million won for a first offense, 2 million won for a second, and 4 million won for a third or subsequent offense. The statutory ceiling under the law is 10 million won, but the enforcement decree sets the actual maximum at 4 million won.

The amendment creates a new obligation for platform operators to inform vendors of origin-labeling requirements. It is separate from the existing duty on vendors themselves to accurately label the country of origin of the agricultural and fishery products and processed goods they sell.

Seo Jun-han, the ministry's retail and consumer policy director, said the change would help prevent violations by ensuring vendors in online transactions are fully aware of their labeling obligations and the consequences of non-compliance, adding that it would better protect consumers' right to know. "We will actively inform and promote awareness among e-commerce intermediaries so the system can take root in practice," he said.