FTC raids Netflix, Wavve offices for 'unfair subscription cancellation practices'

The Netflix logo in Seoul [YONHAP]

Korea's antitrust regulator launched an on-site inspection of Netflix and Wavve for allegedly not informing users properly about the terms of early subscription cancellation.

The Fair Trade Commission (FTC) sent inspectors to the platforms' respective offices in Seoul and secured documents related to their terms of use and other policies on unsubscribing from the services, industry officials said Monday.

Netflix and Wavve, a Korean streaming platform, have purportedly made it difficult for users to cancel their subscription early for a partial refund and have not provided them with adequate instructions for how to cancel memberships within their billing period.

The probe has been led by a newly established FTC team in charge of “swift and intensive” investigations into cases in which many people are highly interested, the officials said.

The FTC refused to confirm the reported probe, simply vowing “a stern response to any violations.”

Netflix is the No. 1 video-on-demand streaming service in Korea, with more than 11.64 million monthly users as of the end of 2023. Wavve, owned by Korea's SK Square, ranked fourth with 4.05 million users, according to data from the Korea Communications Commission.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]