Cybermall Terms of Service, Vendor Agreement, and Privacy Policy Legal Review

Law firm Veat received a request from a cybermall startup A (hereinafter referred to as “the client”) and reviewed and drafted the terms of use, vendor agreement, and personal information processing policy.

The client operated a cybermall dividing sellers and buyers, and Law firm Veat’s e-commerce team separately drafted terms of use for sellers and buyers, reflecting these characteristics.

In particular, because the seller does not qualify as a consumer under the 「Act on Protection and Use of Information in Electronic Commerce, etc.」 (hereinafter referred to as “the Electronic Commerce Act”), we clearly defined the seller’s legal responsibilities and obligations and incorporated provisions based on Article 20 through Article 20-3 of the Electronic Commerce Act, which stipulate the seller’s duty to disclose information and liability for damages, as a communication sales intermediary.

Furthermore, Law firm Veat’s e-commerce team drafted a personal information processing policy to ensure that the client complies with the 「Personal Information Protection Act」 during the process of collecting, storing, and processing user personal information.

For clients operating a communication sales intermediary, Article 20-2(3) of the Electronic Commerce Act stipulates that a communication sales intermediary has the status of a communication sales agent, and we detailed the obligation to take measures necessary for the supply of goods or services within 7 days from the date of the buyer’s offer, as stipulated in Article 15(1) of the Electronic Commerce Act.

 Items that a cybermall operator should review and prepare

A cybermall operator must review and prepare various legal documents such as a vendor agreement, terms of use, and personal information processing policy to minimize legal risks and operate the business stably.

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• Vendor agreement

A vendor agreement is similar to a lease agreement in the online world and contains an agreement that the shopping mall operator leases a space and promises use and profit to the tenant, receiving a fee accordingly.

Such a vendor agreement should include matters regarding the promotional system for how vendor companies can promote their products, and whether vendor companies can post products on other platforms, restricting business activities, and particularly should clearly state matters regarding liability for damages arising from the sales process.

• ​ Terms of use

In the case of terms of use, it is necessary to clearly state the content of the service, membership registration procedures, refund policy, and withdrawal procedures so that the user can clearly understand the service they receive.

​Since clauses that are judged to be unfairly disadvantageous to the user may lose effect, it is necessary to prepare terms of use that comply with the 「Act on Regulation of Private Agreements」 (hereinafter referred to as “the Private Agreement Act”).

• ​Personal information processing policy

Because an operator of a cybermall collects personal information of various users, the personal information processing policy must specifically state how user personal information is collected, how it is used, and how it is protected to explicitly state that user personal information is safely protected.

Law firm Veat’s e-commerce team reviews various laws applicable to e-commerce, such as the Electronic Commerce Act, the Private Agreement Act, and the Personal Information Protection Act, and provides optimal legal advice to clients.

If you are concerned about various legal issues that may arise while operating e-commerce, please contact Law firm Veat.