Gov`t to take protective steps for e-commerce consumers

The government will introduce a consumer-protection system this July under which companies discovering defects in their products will be required to report them to authorities within five days. In addition, measures will be taken to prevent consumers from sustaining losses from electronic commerce activities. The government hosted a meeting of the Consumer Policy Committee headed by Deputy Prime Minister and Finance-Economy Minister Jin Nyum Monday and adopted a package of measures aimed at protecting consumers` rights with these and other highlights.

At the meeting, the committee agreed to apply the defect reporting system to manufacturers, importers and large distribution companies in the first stage, and introduce an emergency recall system to give the government authority to order producers to recall and scrap objects feared to cause damage to consumers. In an effort to arrange consumer protection measures for e-commerce, the government will ask the Consumer Protection Board to carry out necessary research on the systems of developed countries. The government also decided to introduce standard clauses for consumer protection for those engaging in electronic financial transactions, which will be used to settle possible disputes between consumers and banks over losses from accidents such as hacking. Standard clauses for electronic currency users will also be set to specify the rights and duties of e-money users and issuing institutions.

The government will also set up rules governing advertising in a bid to prevent ads from encouraging excessive consumer spending. The government also decided to increase damages for losses of registered mail from the present maximum of 50,000 won to 100,000 won and the compensation for lost parcels from the present 300,000 won to 400,000 won.

Kwon Soon-Hwal shkwon@donga.com