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ASIA & PACIFIC: KOREA
Amendment of the Consumer Protection Act on Electronic Transaction of Korea
Author: Jay Young - June Yang
The Consumer Protection Act on Electronic Transaction (CPAET) was amended on March 31, 2005 to newly adopt the escrow system for Internet transaction and registration system for consumers.
The escrow system was introduced into the CPAET in order to secure reliability and curtail fraud in Internet transaction. Thus, a trusted third party may hold contract money on behalf of the buyer in an Internet transaction and release money to the seller only when the goods of the contract arrives to the buyer if the buyer elects to use the escrow system (Article 24(2) of the CPAET, effective as of March 31, 2006).
Under the Article 24-2(1) of the CPAET, the Korea Fair Trade Commission (KFTC) may establish a registration system for consumers, which manages consumer’s intention not to receive any unsolicited commercial e-mails (effective as of the date of the amendment). Sellers may not send unsolicited e-mail to registered consumers, who manifestly indicate their intention not to receive unsolicited commercial e-mails (Article 24-2(2) of the CPAET, effective as of March 31, 2006).
The amendment of the CPAET has been driven by the increasing threat of Internet fraud and growing complaints from consumers about ‘spam’ e-mail.
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