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[Alpha Biz=(Chicago) Reporter Paul Lee] Kakao filed an administrative suit, saying the Fair Trade Commission's disposition of fines on its music streaming service "Melon" was unfair.
The FTC took issue with Melon's failure to actively inform users of the cancellation function. Kakao has already completed corrective action more than two years ago, and the penalty is excessive.
According to the information technology (IT) industry on the 19th, Kakao recently filed a lawsuit against the Fair Trade Commission with the Seoul High Court.
On the 21st of last month, Melon treated it as a "general termination" en masse when consumers applied for termination between May 2017 and May 2021, and fined Kakao 98 million won for not fully informing them of its right to "mid-term termination".
Melon was a member of Kakao until May 2021, but has since merged with Kakao Entertainment and has been operated and managed by Kakao Entertainment.
Melon countered that the FTC launched the investigation in January 2021 and completed corrective measures in July 2021 after seven months of close business consultations with the FTC.
It also added that the "note of use", which is guided in the sale of the voucher even before it is corrected, also stated that "moderate cancellation and refund can be made if the payment is made seven days after payment or if you use the service."
Kakao says it is too much to impose fines, not warnings, two and a half years later over the already corrected issue. Melon has since made it possible to choose between termination and general termination when canceling the license in the app.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
