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Unfair Terms and Conditions in Labang Platforms: Investigation by Fair Trade Commission


These days, live commerce broadcasting, or so-called ‘Labang’, is a trend among small business owners.

However, ‘Labang’ platforms were caught by the authorities for operating unfair terms and conditions, such as placing responsibility on sellers ‘for any reason’.

Reporter Seung-eun Lee reports.


Live commerce broadcasting, so-called ‘Labang’, has grown rapidly amid the COVID-19 crisis.

You don’t need any special equipment, just a mobile phone, and you can communicate with consumers in real time and explain your products in detail.

Compared to TV home shopping, the commission is lower and the barrier to entry is lower, providing great help to small business owners in particular.

There are even predictions that it will grow rapidly from 400 billion won in 2020 to 10 trillion won this year, accounting for 4% of the entire e-commerce market.

However, it was revealed that major platform operators were unilaterally operating unfavorable terms and conditions for sellers.

The Fair Trade Commission investigated four major platforms, including Coupang, Naver, Kakao, and Grip Company, and found unfair terms and conditions in all of them.

There were 16 clauses of 10 types, and in particular, it contained a clause that required the seller to bear all responsibility if a problem occurred, regardless of the reason.

On the other hand, it was stipulated that the platform should be exempted from responsibility and obligations.

Additionally, all platforms were restricting sellers’ copyrights.

In this case, you will not be able to raise objections even if you modify the video at will or use it for other services.

[김동명 / 공정거래위원회 약관특수거래과장 : 소상공인들이 많이 이용하고 있는 라이브 커머스 방송과 관련해 온라인 플랫폼 사업자들의 약관을 처음으로 심사하고, 거래상 지위 차이에서 발생할 수 있는 불합리한 약관을 시정함으로써 공정한 거래 기반을 마련했다는 데 의의가 있습니다.]

The Fair Trade Commission announced that it will strengthen its review of online platforms to protect the rights of small business owners and new writers with weak negotiating power.

This is Seung-eun Lee from YTN.

Photographer: Jeong Cheol-woo, Yoon Won-sik
Graphics: Park Yoo-dong

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2023-10-09 13:22:00
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