Did Meta Just Get Fined for Ignoring Consumer Protection in South Korea?
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Synopsis
Meta Platforms has been fined for not adhering to South Korea's consumer protection laws. The <b>FTC</b> claims the company failed to inform sellers and implement necessary consumer protection measures, leading to a <b>6 million won</b> penalty. Will Meta take action within the mandated timeline to ensure safer e-commerce transactions?
Key Takeaways
- Meta Platforms fined 6 million won for consumer protection violations.
- FTC mandates compliance with consumer protection laws.
- Issues include lack of seller obligation communication.
- Previous fine of 21.6 billion won for unauthorized data collection.
- Meta must act within 180 days to rectify issues.
Seoul, May 2 (NationPress) — South Korea's antitrust authority announced on Friday that it would impose a fine on Meta Platforms, the parent company of Facebook and Instagram, for allegedly breaching the nation's consumer protection legislation.
Meta Platforms has been penalized with a fine of 6 million won (approximately $4,176) and is required to implement necessary actions to comply with the Act on the Consumer Protection in Electronic Commerce, as stated by the Fair Trade Commission (FTC).
The FTC reported that the U.S.-based corporation did not meet its consumer protection obligations under the law, according to a report by Yonhap news agency.
As per the FTC, Meta Platforms neglected to inform e-commerce vendors of their responsibilities under the consumer protection act and failed to motivate them to adhere to these duties.
The company is also accused of lacking a dispute resolution system for consumers, not having processes in place to verify critical identification details of sellers, and not clearly outlining consumer protection responsibilities within their terms of service.
The FTC has mandated Meta to rectify these issues within 180 days to foster a safer environment for e-commerce activities on its platforms.
In a separate incident last November, Meta was ordered to pay 21.6 billion won (around $15.6 million) for improperly collecting sensitive user data without consent and sharing it with advertisers.
The Personal Information Protection Commission disclosed that it imposed this penalty during a plenary meeting, revealing that the company had gathered data, including religious and political beliefs, marital status, and sexual orientation, from approximately 980,000 local Facebook users in violation of the law.
The Personal Information Protection Act prohibits the use of sensitive information, such as an individual’s ideology, beliefs, and sexual orientation, unless explicit consent is granted.
Furthermore, Meta was criticized for passing this information to around 4,000 advertisers, who utilized the data to create tailored advertisements based on users' personal interests. The commission pointed out that the tech giant failed to transparently indicate how personal data was utilized in its policies and did not seek user consent or implement adequate protective measures.
Point of View
I believe that while fines and penalties are essential for enforcing compliance within the tech industry, they should also serve as a wake-up call for businesses to prioritize consumer protection. South Korea's actions reflect the growing demand for accountability in the digital marketplace.
NationPress
02/05/2025
Frequently Asked Questions
What is Meta fined for?
Meta has been fined for not following South Korea's consumer protection laws and failing to inform e-commerce sellers of their obligations.
How much is the fine?
The fine imposed on Meta is 6 million won, which is roughly $4,176.
What actions must Meta take?
Meta is required to address the compliance issues within 180 days to enhance consumer protection on its platforms.
Has Meta faced penalties before?
Yes, Meta was previously fined 21.6 billion won for collecting sensitive user data without consent.
What was the reason for the previous fine?
The previous fine was imposed due to Meta's illegal collection of sensitive information from local users, violating the Personal Information Protection Act.
