Is the 'Delivery Delay' Responsibility Entirely on Restaurants?…Fair Trade Commission Corrects Unfair Terms of 'Baemin' and 'Yogiyo'

Delivery Apps Prohibited from Arbitrary Contract Termination

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] Unfair terms stating that delivery apps such as Baedal Minjok and Yogiyo "do not bear any responsibility" for damages incurred by consumers due to problems arising during the food ordering and delivery process will be corrected. Delivery app operators will also be held legally responsible according to the degree of their fault.

The Fair Trade Commission announced on the 18th that it reviewed the terms and conditions that delivery app operators such as Baedal Minjok and Yogiyo conclude with consumers and food business owners, and corrected such unfair terms.

Until now, Baemin and Yogiyo exempted themselves from legal liability through terms stating that "even if damages occur to consumers due to problems during the ordering and delivery process, the delivery app does not bear any responsibility."

A Fair Trade Commission official said, "Clauses that exclude legal liability for intentional or gross negligence by the business operator are invalid under the Terms and Conditions Act. Also, if exempting legal liability for ordinary negligence by the business operator is unfairly disadvantageous against the customer's legitimate trust, such exemption cannot be allowed."

Accordingly, the Fair Trade Commission revised the relevant clauses so that delivery apps cannot exempt themselves from legal liability.

The Fair Trade Commission also required correction of clauses allowing delivery apps to unilaterally terminate contracts with consumers at their discretion. The reasons for contract termination such as "acts violating company policy" or "abnormal or unfair use" were revised to "acts violating the terms, illegal methods," etc., to prevent delivery apps from arbitrarily terminating contracts.

Clauses allowing delivery apps to unilaterally terminate contracts with food business owners without prior notice were also corrected. Going forward, when delivery app operators cancel contracts or suspend qualifications with food business owners, they must specify the reasons in detail and follow prior notification procedures.

Regarding these term corrections, delivery apps will notify consumers and registered business owners of the changes within this month and plan to apply the revised terms by the end of this month or in September.

A Fair Trade Commission official said, "By correcting clauses that allowed delivery app operators to exempt themselves from various legal liabilities such as damages arising from disputes on the delivery app platform, delivery app operators will now bear appropriate responsibility according to their degree of fault. We expect that this correction of terms will prevent damages caused by unfair terms to consumers and sellers using delivery apps in the future."