Star ratings, 'likes' now subject to disclosure requirements

Posting only positive reviews may violate law

Fines of up to 10 million won for non-compliance

Businesses that post consumer reviews on online shopping platforms will soon be required to disclose in detail who can write reviews, as well as the criteria for posting, rating and deleting them.

When AI or algorithms are used to select top reviews or automatically delete them, operators must also inform consumers of the key criteria behind those decisions. Failure to disclose the required information can result in fines of up to 10 million won ($7,360).

An example screen showing the information that must be disclosed about consumer reviews [Korea Fair Trade Commission]
An example screen showing the information that must be disclosed about consumer reviews [Korea Fair Trade Commission]

The Korea Fair Trade Commission announced Monday that it had prepared and distributed a question-and-answer guide on the disclosure of review collection and processing information.

The move follows the introduction of a review disclosure regime under a revised e-commerce law that took effect July 21. Under the amended law, businesses that post consumer reviews must disclose the scope of eligible reviewers, the review posting period, the criteria and effects of rating evaluations, and the standards for deletion along with procedures for filing objections.

The rules apply not only to online platforms and brand-owned shopping sites but also to foreign businesses operating in the Korean market and to small and individual business operators. However, businesses that do not post reviews are exempt.

Reviews subject to the disclosure requirements include not only written posts, photos and videos by consumers who have purchased or used a product or service, but also star ratings and "likes." Restaurant and shopping mall reviews on map apps verified through receipt authentication are also covered. By contrast, comments on video platforms open to all users and location reviews without separate verification are not included.

When AI or algorithms are used to select "best reviews" or determine the order in which they appear, vague descriptions such as "usefulness" or "faithfulness" are not sufficient. Businesses must disclose the key criteria and evaluation factors — including actual usage experience, level of detail, appropriateness of photos and videos, and the number of views and recommendations. When points or prizes are awarded for specific reviews, the selection criteria must also be made public.

When AI is used to automatically delete reviews, businesses must disclose the criteria used and the fact that AI was involved. Making a review private or suspending its posting is treated in effect as deletion, and the relevant standards and objection procedures must be disclosed accordingly.

When a review is deleted or made private, the author should be notified by text message, email or similar means, and an opportunity to file an objection must be provided unless the action was taken at the request or direction of a government agency.

If reviews from an external shopping mall are posted alongside a brand's own reviews, the business must disclose that fact and identify the external platforms from which the reviews were sourced. Selectively posting only positive reviews carries a similar effect to deleting or hiding negative ones and may constitute a violation of the law.

As a rule, the required information must be displayed on the screen where consumers first view the full details of a review. If space is limited, a button or link may be used instead, but the information must not be presented in a way that makes it difficult for consumers to notice — such as through small text or an excessively small button.

Businesses that fail to properly disclose the required information may be subject to corrective measures, and fines of up to 10 million won may be imposed for non-disclosure. If a corrective order is not followed, or if corrective measures alone are deemed insufficient to prevent consumer harm, business suspension or surcharges may also be imposed.

The Fair Trade Commission has been running a three-month grace period since July 21 to allow businesses time to update their systems. "We expect this guide to help businesses understand the regime and fulfill their obligations," the commission said, adding that it would "contribute to improving the transparency of review operations and supporting consumers in making informed purchasing decisions."


y2k@heraldcorp.com