South Korea’s Fair Trade Commission put out revised guidelines on Wednesday to prevent social commerce firms from exaggerating discount rates and misleading unsuspecting customers.
“The newly modified guidelines will provide the stepping stones in enhancing wholesome growth of the industry as well as regaining the trust of consumers,” said an official from the FTC.
The FTC said that the number of consumer complaints in connection with social commerce sites reached 7,138 last year, up from 7,030 in 2011.
The trade watchdog placed several corrective orders on social commerce companies which inflated the discount rates and misled customers.
Under the new guidelines, social commerce site operators will have to specify details affecting discount rates and other details so that customers can make better decisions.
The FTC plans to sign a pact with eight social commerce firms including Coupang, Ticket Monster and Grouponto to implement the voluntary guidelines and monitor their practices.
By Yoon Ha-youn, Intern reporter
(
yhayoun@heraldcorp.com)
