Coupang should come up with compensation acceptable for victims of data leak

Seoul, Dec 31 (SocialNews.XYZ) The head of South Korea's data protection regulator said on Wednesday that Coupang should come up with compensation acceptable for victims of its massive data leak amid strong backlash against the online retailer's offer of vouchers and discounts.

Song Kyung-hee, head of the Personal Information Protection Commission, made the call during a parliamentary hearing over the company's data breach that affected 33.7 million users -- around two-thirds of South Korea's population, reports Yonhap news agency.

"It is very important to establish a compensation plan that makes victims feel they have been remedied. The burden of proof lies with the company," said Song when asked about Coupang's plan to offer 50,000 won (US$35) worth of coupons and discounts to each of the affected users.

The plan, unveiled Monday, has drawn criticism because each customer is allowed to spend only 5,000 won at the online retailer's main platform, while the remaining vouchers worth 45,000 won have to be used at other commerce platforms, including one for luxury goods.

Critics say such measures may be aimed at prompting customers to spend more at Coupang's other platforms.

When asked about the need for a collective lawsuit against Coupang, Song noted that while the personal data protection law has a clause on such lawsuits, it does not address monetary damages, pointing to the need for a clearer legal basis.

Meanwhile, the interim head of Coupang, the South Korean unit of US-listed Coupang Inc., said on Wednesday that the company's compensation plan for a recent data breach will not include any conditions requiring customers to waive their right to file lawsuits against the e-commerce giant.

Responding to a question from Democratic Party's Rep. Hwang Jung-a during a parliamentary hearing, Harold Rogers, the company's interim chief executive officer (CEO), said the compensation would not be tied to a clause barring civil or criminal legal action.

"There are no conditions in those vouchers, and there will not be any conditions in those vouchers," he said.

He also said the compensation plan would not be used as grounds to seek a reduction in potential damages should claims be filed in the future.

"In U.S. lawsuits, I don't believe that would be (considered) a mitigating factor," said Rogers, the former chief administrative officer (CAO) of Coupang Inc., referring to the compensation plan.

—IANS

na/

Source: IANS