YOON&YANG

On July 29, 2025, the Korea Fair Trade Commission (the “KFTC”) held an industry roundtable with key online platforms and e-commerce operators to assess compliance with recently enacted regulations on dark patterns and clearly conveyed its intent to strictly enforce the rules once the grace period concludes on August 13, 2025. The amended Act on Consumer Protection in Electronic Commerce (the “E-Commerce Act”), effective February 14, 2025, explicitly regulates six types of dark patterns, and a special six-month grace period was provided for the “drip pricing” category. With the grace period now ending, the KFTC will commence full-scale enforcement. The KFTC stated: “We will proactively launch ex officio investigations into sectors where dark patterns persist and, upon clear confirmation of violations, impose stringent sanctions including corrective orders and fines.”

1. Background

2. Overview of Industry Roundtable

3. Implications

1. Background

Online dark patterns refer to deceptive UI/UX designs that induce consumers to unknowingly make decisions against their own interests. The KFTC launched initiatives to introduce dark pattern regulations in 2023, and the amendments to the E-Commerce Act passed by the National Assembly on February 13, 2024, provided the legal basis for explicit regulation of dark patterns.

The amended E-Commerce Act took effect on February 14, 2025, specifically prohibiting the following six types of dark patterns:

• Drip pricing: Initially displaying only a part of the full price rather than the total payable amount upfront.

• Hidden renewals: Concealing information regarding increases in recurring charges or timing of conversion to paid subscriptions.

• Nagging: Repeatedly prompting consumers through pop-ups or other methods to reconsider or alter their decisions.

• Pre-selected options: Pre-selecting unrelated or additional products or services during the checkout process.

• Misleading hierarchy: Using significant differences in size, shape, color, or other visual elements to steer consumers toward certain options.

• Obstructing Cancellation or Withdrawal: Hindering consumers’ attempts to cancel or terminate.

For drip pricing in particular, the KFTC adopted a recommendation from the Regulatory Reform Committee to provide a six-month grace period through August 13, 2025, to allow businesses sufficient time to make necessary adjustments.

2. Overview of Industry Roundtable

A. Overview

On July 29, the KFTC held an on-site roundtable with the e-commerce industry at the Korea Fair Trade Mediation Agency, aimed at eradicating dark patterns. Attendees from the KFTC included the Director General of the Consumer Policy Bureau, the Director of the Consumer Transaction Policy Division, and the Deputy Director of the Electronic Transactions Monitoring Team. Industry attendees comprised representatives from the Korea Online Shopping Association, the Korea Internet Corporations Association, and 15 major online platforms and shopping mall operators.

B. Key Message

At the roundtable, the KFTC clearly expressed its intent to strictly enforce regulations against dark patterns.

The KFTC defined dark patterns not merely as marketing techniques, but as “deceptive practices intended to induce consumer mistakes and impede rational decision-making,” and strongly warned that if left unchecked, dark patterns would not only undermine fair market practices, but also significantly erode consumer trust in the broader e-commerce industry.

Noting that an adequate six-month grace period had been provided, the KFTC emphasized a zero-tolerance policy stating, “Following the transitional grace period, we will take strict and resolute action against not only deliberate violations but also violations arising from ignorance of the law.”

The KFTC also presented support measures to assist industry compliance. Building on its initial FAQ guidance issued last February, the KFTC provided an updated version reflecting issues raised by industry stakeholders to help address their practical difficulties. The KFTC also sought to facilitate voluntary compliance through enhanced communication by directly assessing the industry’s readiness, including improvements in price disclosure methods, and listening to relevant concerns.

3. Implications

This roundtable marks a significant turning point, clearly signaling the transition from a grace period to active enforcement of dark pattern regulations. In response, e-commerce and online platform operators must systematically address the following:

• Urgent regulatory compliance review: With only slightly more than two weeks remaining until the grace period expires on August 13, businesses must promptly conduct a comprehensive review of dark patterns across their services. Given the KFTC’s explicit statement that it will address not only intentional violations but also those arising from ignorance of the law, lack of awareness of regulatory requirements will no longer serve as an acceptable defense.

• Development of system-wide improvements: Businesses must pursue fundamental improvements throughout their service operations, going beyond superficial changes. This includes reassessing UI/UX design principles, pricing disclosure framework, and subscription billing processes. In particular, the prohibition on drip pricing necessitates a comprehensive review of existing system architectures to ensure clear disclosure of the total price upfront.

• Establishment of continuous monitoring systems: The KFTC has clearly stated its intention to actively conduct ex officio investigations into sectors where dark patterns persist even after the grace period ends. This underscores the need for businesses to internalize continuous, systematic self-assessment and monitoring practices, rather than one-off compliance checks.

• Risk management based on enforcement severity: Violations involving dark patterns carry severe penalties. Even the first offense could result in a three-month suspension of operations with fines, escalating up to a 12-month suspension for a third offense. Given the severity of these penalties, proactive risk management strategies must be developed and implemented well in advance to mitigate exposure from the outset.

Yoon & Yang’s Antitrust & Competition Group comprises more than 50 dedicated professionals who specialize in all areas of antitrust law, including the Monopoly Regulation and Fair Trade Act, the Fair Subcontracting Transactions Act, the Fair Franchise Transactions Act, and the Fair Transactions in Large Retail Business Act. Our team provides comprehensive, one-stop services encompassing advisory work including compliance audits, responses to KFTC investigations, as well as representation in administrative, criminal, and civil litigation. Should you require assistance in any aspect of antitrust or competition law, please contact us or visit our website at www.yoonyang.com.

#dark patterns #E-Commerce Act #fair trade #consumer protection #online platforms