With the advancement of digital technology, e-commerce has become a crucial component of the modern economy, and the increasing volume of transactions conducted through online platforms has further complicated the legal relationships between consumers and sellers. In particular, the anonymity and non-face-to-face nature of e-commerce facilitate consumer harm, revealing the limitations of existing legal remedies in effectively addressing these issues. Major consumer harms in e-commerce include false or misleading advertising, contract breaches, and personal data leaks, all of which not only cause financial and psychological damage to consumers but also undermine trust in the market. As a countermeasure, the introduction of a punitive damages system has been proposed. Punitive damages impose financial penalties exceeding compensatory damages for intentional or grossly negligent misconduct, thereby deterring violations and preventing recurrence. While the adoption of punitive damages can enhance consumer protection and establish fair market practices, its successful implementation requires thorough academic and legal examination. Given the globalization and non-face-to-face nature of e-commerce, harmonization between domestic legal frameworks and international norms is essential, and excessive regulation must be carefully considered to avoid impeding business activities. Therefore, a well-balanced legal design and operational approach are necessary. This study aims to analyze the necessity of introducing punitive damages in South Korea’s e-commerce sector, examine the effectiveness and limitations of such a system, and propose legal and institutional measures tailored to the domestic e-commerce market. Through this research, the study seeks to contribute to strengthening consumer protection and establishing a sustainable legal framework for e-commerce.
Song et al. (Sat,) studied this question.
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