[Asia Economy Reporter Seungjin Lee] Although the use of food delivery applications (apps) is increasing, consumer protection measures have been found to be insufficient. There was no guidance on how to cancel orders, and the standards for handling disputes over incorrectly delivered food were inadequate.
On the 26th, according to an analysis by the Korea Consumer Agency of 691 consumer complaints related to delivery apps received at the 1372 Consumer Counseling Center over 3 years and 8 months from 2016 to August last year, complaints related to 'contract non-fulfillment' such as non-delivery or wrong delivery accounted for the largest portion at 24.0% (166 cases).
Next were complaints related to 'refund delays or refusals' at 20.5% (142 cases), and complaints related to 'system errors, cancellation procedures, etc.' at 14.5% (100 cases).
In this regard, the Consumer Agency investigated the partner businesses (restaurants), cancellation procedures, and terms of use of three popular delivery app companies?Baedal Minjok, Baedaltong, and Yogiyo?from November 1 to December 13 last year. The results showed that some companies provided insufficient information or lacked regulations related to consumer disputes.
Baedal Minjok provided information on five items: partner business name, representative name, business registration number, address, and phone number, but Baedaltong and Yogiyo only provided the business name, business registration number, and phone number.
None of the three companies provided cancellation method guidance during the order or payment stages; related information was only available on the 'Frequently Asked Questions' board.
The time during which cancellation via the app was possible varied by company. For Baedal Minjok, cancellation was possible via the app until the restaurant accepted the order. However, Baedaltong allowed cancellation within 30 seconds after ordering, and Yogiyo allowed cancellation within approximately 10 seconds after ordering via the app.
If a consumer wanted to cancel an order after a certain amount of time had passed, Yogiyo required contacting the restaurant by phone. Notably, Baedaltong required contacting both the delivery app customer center and the restaurant.
Among the companies, only Baedal Minjok stipulated handling standards related to non-delivery or wrong delivery?the most frequent consumer complaints?in its terms of use. However, Baedal Minjok’s terms only included regulations related to non-delivery due to consumer fault, stating that if the consumer cannot be contacted, the food will not be separately stored, and neither redelivery nor refunds will be provided. There was no mention of handling standards related to business operator fault.
The Consumer Agency recommended that delivery app companies expand the provision of partner business (restaurant) information, establish terms of use clauses related to non-delivery and wrong delivery, guarantee cancellation time via the app, and improve guidance on cancellation procedures.
The Consumer Agency stated, "The companies have agreed to actively accept the recommendations."
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