[Transparency Report] August 2022 Transparency Report

Wadiz has been publishing a monthly transparency report since August 2020. The transparency report is a report containing the details of reports received from members on Wadiz and the results of the measures taken in response, centered on funding report data. Through this report, we aim to create a platform environment where members can trust and use the service more confidently bytransparently disclosing the actual data on how Wadiz responds to project issues.

1. Report Submission Data

• The number of reports received is measured based on the number of reports submitted through the 'Report' function on the right side of the funding project page, and if there are multiple reports for a single project, they are counted individually for each reporter. 
• Report types consist of reasons such as 'intellectual property infringement', 'false information in the story', 'distribution of the same product through other channels', and 'violation of community policy' that go against the purpose of funding or undermine the Wadiz community order.
• Report submission data is a key indicator showing potential risks that may directly or indirectly cause damage and dissatisfaction to supporters.

<August Report Submission Data>

2. Pre-Launch Report Ratio

• 'Pre-Launch' refers to apre-disclosure service that allows supporters to preview the project story before the official funding begins.
  On the Pre-Launch project page, a notification sign-up feature is provided for when the funding officially opens.
• Reports during the Pre-Launch stage serve as arisk early detection function before the official project launch, enabling proactive problem resolution before the official funding opens.

<August Pre-Launch Report Ratio>

3. Number of Reported Projects

• 'Number of reported projects' refers tothe number of projects that have received one or more reports, and even if multiple reports are received, if they target the same project, it is counted as one.
• The proportion of reported projects compared to open projects is a key indicator representingthe proportion of projects among all projects that may cause damage and dissatisfaction to supporters.

<Monthly Number of Reported Projects>

4. Statistics by Category of Reported Projects

• This is the category classification data for projects reported in the current month.
• In the current month, out of a total of 17 project categories, 11 categories received reports.

<August Statistics by Category of Reported Projects>

5. Results of Reported Project Processing

• All reports received that meet the reporting requirements aresubject to fact verification.
• For projects where issues are confirmed, follow-up measures will be taken in accordance with the funding report policy.
• When a maker's explanation is needed during the fact verification process, Wadizrequests an explanation via official correspondence, and if necessary, discloses the reported facts and the content of the explanation request to supporters as news.

<August Reported Project Processing Results>

• Processing Completed
  - As a result of fact verification for reports that meet the reporting requirements, if it is determined to be 'problematic' based on policy and follow-up procedures such as funding refund, deletion of inappropriate content, and project cancellation have been carried out; or if it is determined to be 'no problem' based on policy and the case has been closed without any follow-up procedures
• In Progress
  Cases where fact verification is ongoing for reports that meet the reporting requirements, or where follow-up procedures are in progress after being determined as 'problematic' based on policy
• No Processing Required
  Cases classified as 'reports not meeting requirements' or 'previously resolved issues', where no follow-up procedures have been carried out

⁕ Reports not meeting requirements: Reports received that do not meet the reporting requirements or lack sufficient supporting evidence to proceed with follow-up procedures
⁕ Previously resolved issues: Cases where the reporting requirements are met but fact verification was already completed in the past as of the current month, and the case was closed as 'no issue', or the necessary measures were completed through 'project cancellation' or 'funding refund', making follow-up procedures unnecessary

6. Report Submission Cases 

We introduce report submission cases related to 'distribution of the same product through other channels' in the current month. 

Case (1)

• Report Submission Details
  A report was submitted on the grounds that the reward of a project currently in funding is identical to a product that has been sold through other channels for a long time. The reporter attached a sales link from another company distributing the same product as additional evidence.
• Processing Result
  Wadiz confirmed that the reported project is a 'Global Project' and informed the reporter that 'Global Projects' do not fall under the report type for distribution of the same product through other channels, and that the project will proceed without separate measures.

Case (2)

• Report Submission Details
  A report was submitted stating that a maker currently running a funding campaign is selling the same product as the reward on their own mall. The reporter attached a sales link from another company distributing the same product as additional evidence.
• Processing Result
  Wadiz confirmed that the project does not qualify as a 'Global Project' and requested the maker to submit supporting documents to explain the circumstances of distributing the same product.
  Subsequently, the maker acknowledged that they had sold the same product as the reward on their own mall to secure funds after the funding opened. Since this constitutes 'distribution of the same product through other channels', the project was cancelled before the end of funding and the measure was completed. 

7. Learn About Report Types - 'Distribution of the Same Product Through Other Channels'

 'Distribution of the same product through other channels' is a type where a report can be filed if, before the reward has been fully delivered, the same product as the reward is sold through another channel or a funding campaign is run. 

To reduce reports submitted under 'distribution of the same product through other channels', Wadizstrengthened monitoring of simultaneous sales through other channels starting from August 2022. As a result, the proportion of 'distribution of the same product through other channels' reports in August was 7.5%, a decrease of 13.6 percentage points compared to the previous month (21.1%).

<'Distribution of the Same Product Through Other Channels' Report Procedure> 

Not all reports submitted under 'distribution of the same product through other channels' result in action.
If a project qualifies as a 'Global Project', the project may proceed even if the same product as the reward is being distributed through other channels. Additionally, it is also possible to proceed with a project by including a product with a distribution history through other channels as a 'sub-reward'.

<Cases Where 'Distribution of the Same Product Through Other Channels' Is Permitted>

If you have any questions regarding the above, please contact theWadiz Trust & Safety Team (team.trustsafety@wadiz.kr) and we will respond.