E-commerce Subscription Controversy: Digital Ministry Proposes Ban on Pre-checked Auto-Renewal Charges

(Taipei, June 13 — Reporter Chao Min-ya) Consumers have reported being charged a monthly membership fee of NT$59 on Coupang without having signed up for its WOW membership. In response to rising consumer disputes tied to the growth of e-commerce subscription models, the Digital Ministry's Department of Digital Industries (DDI) has engaged with industry players and initiated revisions to the Standardized Contract Clauses for Retail and Online Transactions. The proposed changes prohibit businesses from pre-checking consent for automatic renewal and require explicit consumer consent. The draft regulations have completed the public announcement phase and are scheduled to be submitted to the Executive Yuan for review in June.

Last year, multiple consumers reported being automatically charged the NT$59 membership fee despite not enrolling in Coupang's WOW membership. Some users canceled their membership via the app before the trial period ended and confirmed with customer service, yet still received a charge. Others complained about cumbersome cancellation procedures.

The DDI noted that while subscription-based business models offer convenience, many companies use 'pre-checked' consent clauses in their contracts, resulting in automatic renewals without consumers’ active approval. This 'passive consent' mechanism undermines consumer autonomy and leads to disputes over refunds and contract termination.

To address this, the DDI held consultation and stakeholder meetings at the end of last year to revise the 'Standardized Contract Clauses for Retail and Online Transactions.' The goal is to strengthen consumer awareness, establish explicit consent, and enhance cancellation rights. The draft has completed its public notice period and will be submitted to the Executive Yuan's Consumer Protection Committee for deliberation in June, with implementation following Executive Yuan approval.

The draft introduces a new prohibition (Article 9): 'Prohibition of Pre-checked Auto-Renewal and No-Notification Clauses.' It bans contract terms that assume consumer consent to auto-renewal or that state no prior notice will be given before renewal. Businesses must no longer set auto-renewal as a default or assume consent without clear consumer action.

The revision also requires businesses to clearly and prominently disclose key information—such as renewal period, fee amount, billing cycle, and cancellation methods—before obtaining consent or processing payment. Consumers must be able to cancel without obstruction.

Yang Ming-tse, Section Chief of the Platform Applications Division at the DDI, explained that the rules apply to standardized contracts formed via online transactions in retail sectors overseen by the Ministry of Economic Affairs and the Digital Ministry. This excludes non-business sellers, such as individual auction sellers. Covered services include Shopee VIP, Coupang WOW, and momo's moPlus membership.

Yang stated that once the draft is enacted, businesses must make three key adjustments. First, they must eliminate pre-checked consent, including any wording that assumes automatic agreement to renewal or no notification.

Second, user interfaces must be redesigned. Instead of one-sided statements like 'agreement to auto-renewal upon expiration,' platforms must include checkboxes such as '□ Agree to auto-renewal' and '□ Agree to renewal without prior notice,' allowing consumers to actively opt in. Yang urged users to read terms carefully before checking.

Third, cancellation procedures must be as simple as subscription processes, adhering to the 'easy in, easy out' principle. Regarding consumer complaints about small font sizes and dense contract text, Yang noted these relate to UI/UX design and business models, which are subjective. While no uniform standard exists, the DDI will continue to guide businesses to improve transaction page design.

The DDI emphasized that this regulatory update targets auto-renewal disputes and complex cancellation processes, requiring businesses to follow the principles of 'full disclosure, clear consent, prior notice, and easy entry and exit.' It will continue monitoring emerging online transaction models and iteratively refine regulations to foster a consumer-friendly e-commerce environment. (Edited by Pan Yi-ching) 1150613