The nation’s antitrust watchdog is considering slapping fines on Internet shopping malls run by celebrities for unfair trade practices.

The Fair Trade Commission, which did not release the companies’ names, began looking into the shopping sites’ refund policies upon consumer complaints that they refused to provide refunds for clothing, according to sources at the commission.

“We had to launch a probe as there were so many complaints from consumers who were disgruntled about the shopping sites’ refund policies,” an official at the FTC said.

Under the current law on electronic transactions, a product purchase can be cancelled within seven days after the contract is made, but some shopping mall operators allegedly did not accept customers’ requests for refunds.

Some companies were censured by the FTC for hiding consumer comments about products on the websites.

Such irregularities were found on 10 online shopping sites and the FTC plans to slap fines of between 5 million won and 10 million won on each of them.

Penalties on unfair trade practices by online shopping sites will be toughened in August under a revised law, FTC sources said.

The FTC said earlier that building trust in electronic transactions was one of its key missions for this year. Hence the scrutiny began in celebrity-run online malls that post large revenues and attract high consumer interest.

The shopping mall operators complained that the FTC was going too far.

“We put up a notice saying that swimwear items are non-refundable as they are intimate apparel, and refused requests for refunds. Telling us to refund customers for even swimsuits is too much,” an official of an online mall said.

Another site operator said they hid a post that contained derogatory remarks with the consent of the person who wrote it.

The FTC says it plans to finalize the degree of punishment after discussions among commissioners.

By Kim So-hyun (sophie@heraldcorp.com)