Hiding unsubscribe buttons, forcing surveys to be illegal under updated e-commerce rules

Hiding an unsubscribe button in a hard-to-find location on an online shopping platform, or forcing consumers to complete unnecessary identity verification and surveys when canceling a membership or purchase, will be explicitly listed as violations of the E-Commerce Consumer Protection Act. Informing consumers that subscription cancellations are restricted solely because a product was custom-made will also be added to the list of violations.

The Korea Fair Trade Commission announced Tuesday that it will accept public comments on a proposed revision to the Consumer Protection Guidelines for E-Commerce through Nov. 26.

The revision aims to clarify standards for judging violations and handling consumer complaints in areas that have drawn frequent disputes, including online dark patterns — deceptive design tactics — as well as subscription cancellation rights and businesses' obligations to display their information.

The proposed revision explicitly designates placing an account cancellation button in a location that is difficult for consumers to find as a violation of the law. A typical example is a platform that places its sign-up button on the main screen but buries the cancellation button several steps away from the first screen a user sees after logging in. Hiding the cancellation button under menus where consumers would not think to look — such as personal information settings, security settings or subscription management — is also covered.

Current e-commerce law already prohibits platforms from making cancellation, withdrawal or termination procedures more complicated than sign-up or purchase procedures without legitimate reason. The revision clarifies that making it difficult for consumers to even begin the cancellation process can also constitute a violation.

Adding unnecessary steps during account cancellation or contract termination will also be listed as a violation. This includes requiring consumers to complete mobile phone, automated response system or email verification during cancellation when such verification was not required at the time of sign-up or purchase and is not strictly necessary. Blocking consumers from proceeding with cancellation unless they complete a survey about their reasons for leaving is also included.

The revision also clarifies the standards for canceling subscriptions on custom-made products. Under current law, even for products manufactured individually to a consumer's order, cancellation rights may be restricted only when allowing a cancellation would cause the business irreparable and significant harm.

Accordingly, informing consumers that cancellation is restricted simply because a product is custom-made — regardless of whether irreparable harm to the business would actually result — will be listed as a violation. A representative example is posting a notice on an online shopping platform stating that a product is made to order after purchase and therefore cannot be returned.

The revision also recommends that online platforms arrange their screens so that consumers can easily find a business's address, phone number and business registration number without having to scroll excessively.

The Fair Trade Commission said it expects the revision to improve predictability for e-commerce businesses assessing their legal compliance and to help prevent consumer harm. After the public comment period closes and related ministries are consulted, the commission plans to finalize the revision and proceed with the steps needed to bring it into effect.