[Alpha Biz= Paul Lee] SEOUL, Oct. 21 — South Korea’s Fair Trade Commission (FTC) has completed its investigation into allegations that major subscription-based platforms — including OTT streaming, music, and e-commerce services — made it difficult for users to cancel their subscriptions mid-term.
According to government sources, the FTC imposed fines of ₩4 million (US$2,900) on Wavve and ₩3 million (US$2,200) on Bugs, citing violations related to misleading consumers about mid-term cancellation options.
Wavve and Bugs both offered two types of cancellation:
General cancellation, which allows users to continue accessing services until the end of the billing period without refunds, and
Mid-term cancellation, which terminates the contract immediately and provides a partial refund after deducting penalty fees.
However, the FTC found that both companies failed to properly inform users about the existence and process of mid-term cancellation, promoting only the general cancellation option. Regulators said this deceptive practice hindered consumers’ right to withdraw from their contracts.
In contrast, platforms such as Netflix, Watcha, Spotify, Coupang, Naver, and Market Kurly were not penalized. The FTC determined that since these companies do not operate separate mid-term cancellation systems — instead allowing users to cancel anytime, with access ending from the next billing cycle — it was difficult to establish a clear legal violation.
Some industry observers criticized the outcome, arguing that it is unfair to penalize only companies that attempted to offer mid-term cancellation, while those without such options faced no regulatory consequences.
An FTC official explained, “There were no significant consumer complaints or evidence that the absence of mid-term cancellation systems caused harm. It was difficult to determine which cancellation model was more beneficial to consumers.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
