FTC sanctions on 'Airbnb' that neglect consumer protection

COMPANY / Reporter Kim Jisun / 2024-03-12 03:02:40

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] The Fair Trade Commission has imposed sanctions on Airbnb Island (Airbnb), which did not record its identity information on the initial screen and did not provide the host's identity to consumers.

Under the "Act on Consumer Protection in E-Commerce (hereinafter referred to as the E-Commerce Act)" on the 11th, the Fair Trade Commission decided to impose future action orders and fines for acts that it did not provide to consumers until the application is made by checking its identity information and telecommunications sales broker's identity information as a cyber mall operator.

However, Airbnb has voluntarily corrected this act since August 2022.

In addition, Airbnb did not fulfill its obligation to display its identity and other information on the initial screen on the mobile app. The company has voluntarily corrected it since July 2023. In response, the FTC decided to impose a ban and fines in the future, judging that the act violated the obligations of cyber mall operators under Article 10 paragraph 1 of the Electronic Commerce Act.

In principle, the act is subject to a fine of 1 million won in accordance with the criteria for the imposition of fines in attached Table 3 related to Article 45 of the Electronic Commerce Act and Article 42 of the Enforcement Decree, but it corrected the violation of the law itself to cut the fine in half.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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