Facebook And Instagram's Marketplace Practices Under FTC Radar In South Korea For User Safety Slip-Ups

South Korea’s antitrust watchdog is reportedly considering sanctions against Meta Platforms Inc. META due to alleged shortcomings in consumer protection on its online marketplaces.

What Happened: Reuters reported on Friday that Meta is reportedly under scrutiny by South Korea’s antitrust body for alleged failures in safeguarding users on its Facebook and Instagram marketplaces from fraud.

The Korea Fair Trade Commission (FTC) is contemplating punitive measures against Meta after investigating potential e-commerce law violations. The FTC’s investigation, which began last year, has progressed to the point where an examination report has been sent to Meta.

The FTC accuses Meta of not taking sufficient steps to resolve disputes and protect users on its online marketplaces, a requirement for e-commerce entities. Facebook and Instagram are not registered as e-commerce businesses, but their marketplace operations subject them to relevant laws.

The FTC has withheld comments on the ongoing investigation, adhering to its policy. Meta has yet to issue a response to these allegations.

This development follows reports that a South Korean consumer protection agency is examining the practices of major international online shopping platforms, including those of Alibaba Group Holding Ltd.

See Also: This Long-Time Dogecoin Bull Made A Valentine’s Day Prediction About DOGE, SHIB Comebacks — Here’s How It Is Playing Out

Why It Matters: The potential sanctions from South Korea’s FTC are part of a broader pattern of regulatory challenges Meta has faced regarding its marketplace operations. In August, Meta was under fire for allowing the sale of recalled items on Facebook Marketplace, including products linked to infant fatalities. Bipartisan lawmakers in the U.S. raised concerns directly to CEO Mark Zuckerberg about the public safety risks of such listings.

In November, the U.K.’s Competition and Markets Authority (CMA) accepted commitments from Meta to prevent the exploitation of advertising customers’ data on its marketplace, a move aimed at protecting businesses and consumers.

Read Next: ‘DOGE Will Go… Possibly To $100:’ Crypto Analyst Predicts Dogecoin Will Skyrocket In Event Of ‘Hyperbitcoinization’

Photo by DANIEL CONSTANTE on Shutterstock