The Korea Fair Trade Commission (KFTC) has conducted a comprehensive review of the terms and conditions for telecommunication services of the three major mobile carriers—SK Telecom, KT, and LG U+—and directed them to substantially revise unfair clauses related to personal information protection and liability for damages.

This comes amid growing consumer concerns over the carriers' information protection systems following a series of recent personal data breaches. The KFTC stated that it took this measure to rectify the terms and conditions in the telecommunications sector, a service used by the vast majority of the public.

On the 6th, the KFTC announced the results of its review of the three carriers' terms and conditions, ordering them to voluntarily correct four types of unfair clauses. This action marks a rare case in which all three major carriers received correction orders simultaneously.

Strengthened Accountability for Data Breaches and Service Disruptions

Existing carrier terms and conditions included provisions stating that the service provider would not be held liable even if communications or personal information were leaked over unencrypted Wi-Fi segments. Additionally, there were clauses that placed civil and criminal liability solely on switchboard operators in cases where phone numbers were spoofed through the hacking of private telephone exchange systems.

Regarding these provisions, the KFTC determined that granting blanket exemptions regardless of whether the provider was at fault is invalid under the Terms and Conditions Act. The carriers were ordered to revise the terms so that they assume liability in cases of intentional or negligent acts.

Clauses exempting providers from liability for damages in the event of service disruptions were also subject to change. Previously, providers could escape liability for damages if the company proved that the customer acted intentionally or negligently. Going forward, the terms have been revised so that when both the user and the provider are at fault, damages are shared according to each party's respective degree of fault. The provider's liability is limited to grounds for 'reduction' rather than complete 'exemption.'

Correction of Account Impersonation Liability and Implied Consent Clauses

LG U+'s terms regarding IDs and passwords were also adjusted. Previously, the company was only liable for problems caused by a user's ID or password, or for unauthorized use by a third party, in cases of 'intentional or gross negligence.' However, the scope of liability has been expanded to include cases of 'intentional or general negligence.'

Among KT's terms, there was a clause stipulating that if a customer did not express a separate intention within a designated period regarding changes to the terms or contract termination, they would be deemed to have consented. The KFTC ordered a correction so that this provision is only valid when the fact that 'failure to express intention will be deemed as consent' is clearly notified.

The KFTC concluded that the unfair terms identified in this review are considered invalid under the 'Act on the Regulation of Terms and Conditions.' Furthermore, it stated its commitment to continuously correcting unfair terms and conditions in sectors closely related to daily life in order to protect consumer rights and interests going forward.