[IT Litigation] E-commerce Law Revised! ‘Dark Pattern’ Regulations Key Summary

As of February 14, 2025, the 「Act on the Protection of Consumers in Electronic Commerce, etc.」(hereinafter referred to as the “Revised Electronic Commerce Act”) has strengthened regulations on Dark Patterns to promote consumer protection. For businesses or telecommunications salespersons engaged in electronic commerce, optimizing the consumer experience is an important competitive factor, but actions that induce consumer mistakes or carelessness to lead to unnecessary spending may be subject to legal regulation.

A Dark Pattern refers to a design or interface technique that induces consumers to make unintended decisions. For example, hiding automatic payment renewals or failing to clearly display the total payment amount, or deliberately making the cancellation process complicated, would be considered such practices. With the revision of the Act, electronic commerce companies and telecommunications salespersons need to check their existing operating methods and comply with the law.

In this post, we will examine 6 types of Dark Patterns regulated by the Revised Electronic Commerce Act, answer frequently asked questions related to Dark Pattern regulations, outline penalties for violations, and discuss practical corporate response measures.

• 6 Types of Dark Patterns Regulated by the Revised Electronic Commerce Act

1. Hidden Renewal (Prohibition of Automatic Payment Induction)
Hidden Renewal refers to the practice of automatically renewing a recurring payment product without separate consent, even if the price is increased or a previously free service is converted to a paid service. The Revised Electronic Commerce Act prohibits this practice and mandates prior consent and notification to consumers. 

2. Prohibition of Sequential Price Disclosure
Sequential price disclosure refers to the practice of displaying only a portion of the total price on the initial screen to entice consumers, then sequentially disclosing additional prices during the consumer’s product purchase process, and charging the consumer the final price including the additional price. The Revised Electronic Commerce Act prohibits this practice to ensure that consumers can clearly understand the total cost before purchasing.

3. Prohibition of Pre-Selection of Specific Options
The Revised Electronic Commerce Act prohibits providing consumers with specific products with additional options pre-selected. This prevents unwanted additional payments and allows consumers to decide whether to select additional options.

4. Prohibition of Misleading Hierarchical Structure
A misleading hierarchical structure refers to the practice of manipulating the size, color, or arrangement of selection items to mislead consumers into believing that a specific option is advantageous. The Revised Electronic Commerce Act prohibits this practice to allow consumers to make objective and fair selections.

5. Prohibition of Interference with Cancellation/Withdrawal
The Revised Electronic Commerce Act prohibits practices that force or restrict consumers who wish to cancel a subscription service or withdraw membership by imposing complicated procedures or providing limited methods.

6. Prohibition of Repetitive Interference
This refers to practices that repeatedly request consumers to receive advertising information, agree to personal information use/provision, etc., inducing them to agree without due consideration. For example, practices that continuously request consumers to reverse their choices through pop-up windows are prohibited.

• Frequently Asked Questions (FAQ) Related to Dark Pattern Regulations 

1. Regarding Hidden Renewals
Q. When must consumer consent be obtained and by what date?
A. Consumers must provide clear consent within 30 days of the payment date when the price is increased or a conversion to a paid service occurs.
Q. Is additional consent required if the change was already notified at the time of the initial contract?
A. Even if the change was previously notified, a process must be in place that allows consumers to easily reconfirm and cancel the automatic renewal.

2. Regarding Sequential Price Disclosure
Q. What is the first screen where price information is displayed?
A. This refers to the first screen on a cyber mall that induces consumers to purchase by showing them the product and price. For example, this may include search result screens or category screens.

3. Regarding Pre-Selection of Specific Options
Q. Is pre-selecting an option considered a Dark Pattern?
A. Yes, pre-selecting an option can be considered a Dark Pattern. It's important to allow consumers to make informed decisions without unwanted additions.

4. Regarding Interference with Cancellation/Withdrawal
Q. What are the consequences of hindering cancellation or withdrawal?
A. Regulations prohibit companies from hindering consumers who wish to cancel a subscription or withdraw membership. Transparency and ease of process are essential.

5. Regarding Repetitive Interference
Q. How does repetitive solicitation affect consumer experience?
A. Repeatedly asking consumers to agree to terms without proper consideration is considered a Dark Pattern. Companies need to ensure a respectful and less intrusive communication strategy.

• Penalties for Violations

Businesses using online Dark Patterns in violation of the Electronic Commerce Act may receive corrective actions from the Fair Trade Commission (Article 1, Paragraph 1 of the Act). If a business fails to comply with the corrective action order or if corrective action alone is not sufficient to prevent consumer damage, stronger sanctions may be imposed. These may include business suspension orders and fines for businesses that violate Dark Pattern-related regulations. The amount of the fine may vary depending on the severity of the violation and the extent of the damage.

• Corporate Response Measures

With the strengthening of Dark Pattern regulations through the revision of the Electronic Commerce Act, electronic commerce companies and telecommunications salespersons must establish consumer-friendly operating practices. It is particularly important to review elements such as automatic payment renewals, price information provision, and withdrawal procedures, and to improve systems to comply with the new regulations.

>Improve Website and App UX/UI: Thoroughly review elements that may be considered Dark Patterns, such as automatic payments, price information, option selection, and withdrawal procedures, and redesign them to allow consumers to make decisions based on clear information.
>Revise Terms and Conditions and Internal Policies: Terms and conditions related to recurring payments, cancellation/withdrawal, and price display methods must be revised. It is important to verify that policies such as automatic conversion from free trials to paid subscriptions meet legal requirements. It may be necessary to have a legal professional review the need for specific adjustments. Revise terms and conditions for recurring payments, price information, and withdrawal procedures, and establish internal policies that meet legal requirements.
>Develop a Response Strategy for the Fair Trade Commission and Consumer Protection Agencies: If there is a risk of violation of the law, companies should proactively develop a response strategy in consultation with legal professionals with experience in Fair Trade Commission investigations and establish a plan for smooth cooperation with consumer protection agencies.
>Utilize Legal Review and Advisory Services: You should review how the revised Electronic Commerce Act affects your operating practices and verify whether specific practices are subject to regulation. Regularly using legal advisory services to check for compliance with Dark Pattern regulations and continuously identify areas for improvement from a consumer protection perspective is also an effective method.

Lawmu Law Office provides expert legal advice to assist with compliance with the revised Electronic Commerce Act, supporting companies in preventing violations and providing customized solutions. Electronic commerce companies and telecommunications salespersons must be familiar with this revision and develop appropriate response measures. Please contact Lawmu Law Office for legal reviews or response strategies.