The Ministry of Digital Affairs (MODA) is amending regulations governing e-commerce subscriptions amid consumer complaints of money being deducted from their accounts despite not having joined online retail platform membership programs.
The ministry’s Administration for Digital Industries said that last year it received numerous public complaints alleging they were charged an additional NT$59 in membership fees after completing a purchase on the Coupang platform, despite not having signed up for its membership program.
It said it also received complaints from other users who were billed for membership, despite canceling their trial membership.
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The platform’s membership deactivation process was too laborious, making it difficult to cancel, it said.
Subscription-based e-commerce models have continued to grow, as they offer greater convenience for consumers, it said.
However, some businesses include “pre-selected consent” clauses in their contracts, leading to automatic renewals and charges being applied without explicit agreement from users, it said.
These forms of “passive consent” could undermine consumers’ ability to make independent decisions, and have triggered disputes over refunds and contract cancelations, it said.
Late last year, consultation and stakeholder meetings were held to revise the Mandatory and Prohibited Clauses for Standard Contracts in Online Retail Transactions (零售業等網路交易定型化契約應記載及不得記載事項), aiming to strengthen consumers’ right to information, require explicit consent and enhance cancelation protections, it said.
The proposed amendments have completed their public notice period and are expected to be submitted to the Executive Yuan this month, it said.
Once approved, the new rules would be announced and implemented by the ministry.
The draft amendments detail what should not be included in retail and Internet contracts, stating that automatic deductions and refusal to further notify users are to be banned, and that any mention of such functions in the contracts should be removed.
E-commerce operators should confirm with consumers before payment or agreement on the duration of the membership, the amount payable, the billing cycle and ways to cancel subscription, the draft says.
They must update their service contracts and membership programs to reflect legal changes and, in the user interface, must clearly and explicitly include options for users to click to agree to auto-deductions and waive their right to be informed before auto-deductions, said Yang Ming-tse (楊銘澤), head of the agency’s Platform Application Division, said yesterday.
They should also make it easier for users to cancel their membership programs, he added.
The proposed measures would apply to standard-form contracts used by retail businesses regulated by MODA, the Ministry of Economic Affairs and other authorities involved in online consumer transactions, he said, adding that they would not cover non-business sellers, such as individual auction users.
Under the MODA’s remit, they would apply to services including Shopee VIP, Coupang WOW membership and momo’s moPlus membership, he said.
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