Korean lawmaker plans bill to hold phone ad brokers liable

A South Korean lawmaker said on October 19 that he plans to introduce an amendment to the Telecommunications Business Act that would make advertising and brokerage companies responsible for protecting users in the mobile phone market, according to Digital Today.

The lawmaker, a member of the People Power Party who sits on the National Assembly's Science, ICT, Broadcasting and Communications Committee, said the measure targets misleading and high-pressure sales that harm consumers.

The amendment would impose user-protection obligations on online platforms, social media services and advertising agencies that take part in selling or promoting mobile plans and devices.

Under the current law, companies that do not directly handle device activation — including advertisers, brokers and intermediaries — fall outside the pre-approval system.

Complaints about unfair practices in the mobile market rose 26.5 percent to 1,473 in the January–July period this year from 1,164 a year earlier, the report said. Reports of false or exaggerated advertising rose 73.9 percent, from 494 to 859, while violations of the pre-approval system increased 80 percent.

Background

The Mobile Device Distribution Improvement Act was repealed, removing the requirement to disclose subsidies, and sales through online platforms, social media, influencers and ad agencies have expanded since then, the report said.