"Overseas Shipping Non-Refundable?"... Luxury Platforms Improving Customer Service Policies

Fair Trade Commission Issues Corrective Measures to 4 Luxury Platforms
Strengthening Customer Response Amid Unfair Clause Criticism

[Asia Economy Reporter Song Seung-yoon] Luxury platforms, which have suffered from issues such as deceptive discounts and counterfeit products, are expected to simultaneously improve their customer response policies.

Earlier, the Fair Trade Commission reviewed the terms and conditions of four online luxury platforms?Balan, Trenbe, Mustit, and OK Mall?and corrected eight types of unfair contract clauses. As a result of this action, overseas delivery products, which were previously difficult to exchange or refund, can now be refunded or exchanged within one week.

The Fair Trade Commission ordered Balan, Trenbe, and Mustit to amend clauses in their terms regarding overseas purchases, overseas delivery, and "final sale" items that did not recognize or restricted the right to withdraw from a contract within seven days of receiving the product under the Electronic Commerce Act. Accordingly, consumers can now request returns, refunds, or exchanges within seven days of receiving any product.

In the case of Balan and OK Mall, clauses prohibiting members from repurchasing or reselling were deleted, and Mustit's terms, which set a two-year limit for exercising the right to claim compensation for counterfeit products, were changed to allow claims for compensation without time limits if damaged by counterfeit goods. Additionally, clauses in the terms of all four companies that allowed platforms to avoid responsibility for consumer damages were also revised.

Furthermore, if personal information is leaked due to disputes between vendors and consumers or member negligence, the platform will be held responsible if there is intentional or negligent fault. Regulations allowing the platform to delete member posts without prior notice were also amended so that deletion must comply with the requirements and procedures under the Information and Communications Network Act and Copyright Act. Reasons for terminating service contracts or restricting service use were specified as "two or more counterfeit product determinations" and "fraudulent transactions." However, no special corrective measures were taken regarding the return fees (cancellation fees) of luxury platforms, which have been a major source of consumer complaints.

The sales of these major online luxury platforms nearly doubled over two years. However, many consumers expressed dissatisfaction due to these unfair trade clauses. The combined sales of the four luxury platforms increased by 84%, from approximately 207.8 billion KRW in 2019 to about 382.4 billion KRW last year. Meanwhile, consumer complaints related to luxury platforms filed with the "1372 Consumer Counseling Center" increased 3.8 times, from 171 cases in 2019 to 655 cases in 2021.