"Platforms demand refunds from small businesses even when consumers are at fault"

[Financial News] The government will conduct a fact-finding survey on the burden small businesses face when using platforms, including intermediary commissions, advertising fees, and delivery charges, to create a fair platform ecosystem. It will also work to secure "data sovereignty for small businesses," enabling platform-affiliated businesses to directly use data accumulated during their operations.
 The Ministry of SMEs and Startups held the Meeting to Hear On-Site Difficulties Faced by Platform-Affiliated Businesses at the Korea Federation of Micro Enterprises in Yeongdeungpo District, Seoul, on the 21st, chaired by Second Vice Minister Lee Byeong-gwon. The meeting was organized to hear from small businesses operating on online platforms that have struggled with unfair business practices and to discuss mutually beneficial measures.
 Small business representatives presented the government with cases of harm involving platform operators' intermediary commissions, advertising fees, settlement periods, and refund and return policies.
 They complained that, as advertising on platforms has become virtually essential, platform operators induce them to spend excessively on advertising. They also said the operators pass refund and return processing costs on to platform-affiliated businesses without determining whether the consumer was at fault, either intentionally or negligently. The businesses also raised concerns that unilateral sanctions imposed by platforms damage their reputations.
 The Ministry of SMEs and Startups plans to conduct a fact-finding survey to comprehensively assess the business burden arising from platform use, including intermediary commissions, advertising fees, and delivery charges. It also plans to guarantee small businesses' data sovereignty so that platform-affiliated businesses can directly use the data assets they accumulate in the course of operating their businesses.
 The ministry will also institutionalize the "Platform Shared-Growth Index assessment," which quantitatively measures the level of cooperation between platforms and platform-affiliated businesses. If small businesses suffer losses because of unfair practices by platform operators, it will work with the Fair Trade Commission to take swift action.
 Vice Minister Lee said, "Platforms and platform-affiliated businesses need a transparent and fair trading environment to grow together as equal partners. The government will make every effort to ensure that a culture of voluntary mutual cooperation between platforms and small businesses operating on them spreads by actively reflecting on-the-ground voices in policy and maintaining continuous communication with small businesses and the platform industry."

[email protected] Kim Hyun-chul Reporter