Meta may be Punished by South Korean Regulators for Failing to Protect Consumers from Fraudulent Transactions

Meta may be Punished by South Korean Regulators for Failing to Protect Consumers from Fraudulent Transactions


On March 8 that the Korean Fair Trade Commission will consider imposing penalties on Meta Platforms because the company failed to fulfill its consumer protection obligations and protect Facebook and Instagram. Some users of the trading platform are protected from fraudulent transactions.

Meta may be Punished by South Korean Regulators


According to reports, the agency accused Meta of failing to take appropriate measures to protect users who conduct transactions through Facebook and Instagram in accordance with local e-commerce store requirements , and failing to provide consumers with remedies when disputes arise in sales transactions . “Although they are social media platforms and are not registered as ‘e-commerce businesses,’ the online stores they operate actually require them to comply with the law.”

The report cited a case in which a 30-year-old local housewife saw a baby diaper bag on Instagram and later spent 85,000 won (IT House note: currently about 461 yuan) to buy it. It is said that the woman believed that the seller’s account had “commercial” certification and had more than 10,000 fans , so she transferred the money to the other party’s account without any suspicion. But after 7 months, she still hasn’t received the product.

The woman repeatedly asked the other party for a refund through comments, private messages and even other chat tools, but she never received a reply and was blocked by the other party. In December last year, she reported the seller to IG for “fraudulent or false” behavior, but nothing changed and the seller’s account involved was still operating .

The Dong-A Ilbo commented that it was precisely because victims like this woman were increasing day by day that the Korean Fair Trade Commission decided to take action against Meta.

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