Verification of Online Retailers is Essential! Revised Electronic Commerce Act, Legal Consultation (+Actual Cases) Regarding Dark Pattern Regulations
Article posted in 2025-04-02 15:54:41 | VEAT
Law firm Veat received a request from artificial intelligence startup A (hereinafter referred to as "the client") to provide legal advice regarding the amended Act on the Protection of Consumers in Electronic Commerce, etc., specifically regarding the dark pattern regulations, particularly hidden renewals and obstruction of cancellation/withdrawal.
As of February 2025, the revised Electronic Commerce Act will be enforced, leading to the full-fledged regulation of ‘dark patterns’ aimed at profiting from consumers in an unfavorable way online.
What is a dark pattern?
A dark pattern is a design or UI strategy that interferes with or induces consumers to make decisions that are not autonomous or rational, leading to outcomes that benefit the company. This concept has been discussed in academia and consumer protection agencies, but this Electronic Commerce Act amendment marks its first clear reflection in domestic legal systems.
Key Regulations Regarding Dark Patterns under the Revised Electronic Commerce Act
The revised Electronic Commerce Act adds specific regulations regarding dark patterns to strengthen consumer protection.
<Key Items of Dark Patterns>
Hidden Subscription The Fair Trade Commission prohibits the practice of consumers automatically agreeing to regular payments without their knowledge, known as ‘hidden renewal.’ Telecommunications vendors and online platform providers must obtain consumers’ clear prior consent for conversions to paid services after the end of free trials or increases in payment amounts, and must provide consumers with sufficient information about increases in payments or conversion to paid services and obtain their consent.
Sequential Price Disclosure The practice of only disclosing part of the price of goods or services and disclosing the total cost at the payment stage is also prohibited under the revised Electronic Commerce Act. Vendors must ensure that consumers can clearly see the final payment amount from the beginning to the end, preventing opaque pricing and providing a fair trading environment for consumers.
Pre-Selected Options The practice of forcing consumers to choose by pre-selecting specific options when purchasing a product is also regulated. Consumers must be able to clearly select the options they want, and vendors cannot force this upon them.
Misleading Hierarchies
It is also prohibited to design choice items differently to induce consumers to select specific options. For example, this includes practices that lead consumers to purchase specific products through differences in size or color.
Obstruction of Cancellation/Withdrawal
It is also legally prohibited to obstruct consumers when they cancel a product or withdraw. Actions that complicate user withdrawals from online services or make it difficult for consumers to cancel easily are considered illegal.
Repeated Interference
Requiring consumers to repeatedly change their choices through pop-up windows, etc., is also prohibited. This serves as a means of causing consumers to take unintended actions, and it is regulated to guarantee consumers’ freedom of choice.
While dark pattern regulations may seem restrictive for companies, they are ultimately an opportunity to secure transparency and fairness in the digital consumer environment, and to build trust-based customer relationships in the long run. This applies especially to online platform providers, telecommunications vendors, platform-based startups, subscription SaaS services, and digital content distributors, and they can lay the foundation for stable growth by properly checking legal risks and developing response strategies.
The client has proactively checked legal risks to the subscription model and implemented improvements to comply with the Electronic Commerce Act, based on legal advice from Law firm Veat. Specifically, they have strengthened legal stability through revisions to service terms, modification of UI/UX, and enhanced consumer disclosure procedures.
Law firm Veat provides legal support to companies based on a deep understanding and experience in emerging issues such as dark patterns, compliance with AI-based services, and regulations on the subscription economy, helping them to prevent unnecessary legal risks.
In particular, legal issues related to dark patterns are important for building trust with consumers, so businesses need a thorough understanding and preparation for the regulations. Law firm Veat offers tailored solutions and aims to provide one-stop legal services that proactively identify and comprehensively respond to regulatory risks.
If you need legal advice regarding telecommunications vendors, online platform providers, and the Electronic Commerce Act, or dark patterns, please feel free to contact Law firm Veat.
This case study can also be viewed on the Law firm Veat blog.
- Essential for Telecommunications Vendors! Revised Electronic Commerce Act, Legal Advice on Dark Pattern Regulations (+Actual Case)
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Law firm Veat
The revised Electronic Commerce Act clearly stipulates the prohibition of unfair trade practices, including dark patterns, and this has led to significant changes in the operating practices of online platform providers and telecommunications vendors. As the revised legislation comes into effect, institutional safeguards for consumer protection will be established, and vendors will have a duty to comply with it.