Kakao faces backlash over data privacy violations in ad service

Images show KakaoTalk's business advertising service, Brand Message. Captured from Kakao's website

Kakao is under fire over its messaging app KakaoTalk’s corporate advertising service, facing accusations that the tech giant is misusing its users’ personal information and burdening them with data costs.

Seoul YMCA released a statement on Monday, claiming that KakaoTalk had been infringing on its users’ right to privacy regarding their personal data.

“When KakaoTalk users click on a new incoming message in their chat list, they are automatically exposed to ads. Kakao matches phone numbers provided by advertisers with users’ registered phone numbers from their accounts to target who gets the ads,” the organization said.

“This amounts to using personal information beyond its intended purpose and violates individuals’ rights to determine how their personal data is handled.”

The ad service, called Brand Message, is a business advertising tool that Kakao launched in May. It allows businesses to send promotional messages directly to KakaoTalk users who have previously agreed to receive company updates.

The group alleges that Kakao cross-checks phone numbers against its user account database to send ads directly, and points out that these ad messages consume users’ mobile data, effectively shifting the cost of loading large images or videos onto them.

It adds that the practice violates laws on personal information misuse and fails to notify users about potential charges.

“We urge Kakao to obtain explicit consent from users before showing them Brand Messages, clearly disclose that personal data is being used to send these ads and inform them exactly how much of their own data will be consumed when they open them,” Seoul YMCA said, adding it may file a government complaint asking for an investigation, depending on the company’s response.

The backlash against Brand Message surfaced when the Special Messaging Operator Association filed a complaint with the Personal Information Protection Commission against Kakao for misusing personal data earlier this month.

Kakao defended itself by releasing a survey of 400 participants that showed Brand Message scored higher points for trustworthiness than text messages. The company noted it only sends ad messages to users who have agreed to receive them and the service’s description notes that ad messages can be tailored depending on events, promotions and campaigns.

However, controversy heated up again when the nongovernmental organization Consumers Korea released its own survey on Brand Messages.

It showed that among 385 respondents, about 70 percent were unable to distinguish between KakaoTalk messages for essential notifications and ad-driven messages. Also, 80 percent answered that they were opposed to Kakao extending users’ consent to receive company updates to cover Brand Messages in general.