Scroll-jacked: Coupang under review for forcing users onto its platform

Korea’s broadcasting and telecommunications watchdog is looking into user complaints against Coupang alleging that they are "forcibly" led to the online marketplace through ads they didn't click on.

Coupang delivery trucks are parked in Jung District, central Seoul, on June 3. [NEWS1]

Korea’s broadcasting and telecommunications watchdog is looking into user complaints against Coupang alleging that they are "forcibly" led to the online marketplace through ads they didn't click on.

The Korea Communications Commission (KCC) announced Friday that it will investigate whether Coupang violated the Telecommunications Business Act by running online advertisements that redirect users to its website or app without their consent.

The regulator also plans to examine whether the company’s handling of account deactivation for its affiliated services — Coupang Eats and Coupang Play — illegally limits users’ ability to terminate individual services.

The KCC began monitoring Coupang's digital advertising and service structure in November of last year.

The commission found that Coupang’s ads were displayed across a wide range of websites and social media platforms, sometimes redirecting users to Coupang’s services without any action on their part. This type of redirection has led to user complaints and raised consumer rights concerns.

The watchdog noted that Coupang’s internal processes for managing these advertisements appear inadequate and said it has found grounds to conduct a formal investigation.

The KCC also pointed out that Coupang does not provide a clear way for users to deactivate individual services such as its food delivery platform, Coupang Eats, or its streaming service, Coupang Play, instead tying all services to a single, integrated account.

The commission said it will determine whether this practice constitutes a restriction of users’ termination rights under the Telecommunications Business Act.

“If we confirm any prohibited acts during this investigation, we will take strict action, including imposing fines and issuing corrective orders in accordance with the law,” the KCC said.

The Coupang Eats logo is adhered to a restaurant window in Seoul on Nov. 10, 2024. [NEWS1]

Coupang pledged full cooperation with the investigation and emphasized its commitment to tackling fraudulent advertising.

“We have consistently taken strong action against deceptive advertising by malicious advertisers, including withholding revenue, closing accounts and operating a reward system for reports,” a Coupang spokesperson said. “We will work closely with the KCC to eliminate misleading ads from malicious advertisers.”

Regarding the account termination issue, Coupang said, “We have already provided a full explanation in a previous investigation by another agency and confirmed that there were no issues. We will again demonstrate our efforts to protect users through this investigation.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM NAM-YOUNG [kim.juyeon2@joongang.co.kr]