FTC launches probe into Coupang's complex account deletion process: sources
A Coupang delivery truck waits at a logistics center in Seoul, Monday. Yonhap
The Fair Trade Commission (FTC) has launched an investigation into allegations that e-commerce giant Coupang Inc. deliberately made its account withdrawal process complex, officials said Monday.
The investigation aims to determine whether Coupang's account deletion procedures violate the Act on Consumer Protection in Electronic Commerce, according to the officials.
The probe comes amid criticism that users seeking to delete their Coupang account must complete multiple steps, including entering their password twice, filling out a survey and going through other procedures.
At the same time, the FTC has ordered Coupang to submit measures to simplify its account deletion procedures as a preemptive consumer protection measure, noting that the investigation could take months to conclude, the officials said.
Additionally, the antitrust regulator is also looking into suspicions that Coupang's terms of service may violate related laws.
The terms include a clause stating that the company shall not be liable for any damage caused by a third party's illegal access to or use of its servers.
The FTC's scrutiny follows Coupang's disclosure last month that personal information from some 33.7 million customer accounts had been breached, one of the country's largest-ever data leaks.