"Broken Electric Scooter Accidents, No Liability"...Strange Rental Terms

Investigation of 9 Major Businesses by Consumer Agency
No Guidance on Device Inspection Items and Methods
72.9% of Users Unaware of Inspection Obligations in Terms

Most electric scooter rental services do not provide guidance on device inspection items and methods, or have unfavorable transaction conditions for consumers, such as not taking responsibility for accidents caused by device problems.

On the 23rd, the Korea Consumer Agency announced that a survey of the transaction conditions of nine major electric scooter rental service providers revealed these findings. The surveyed companies included Das Sharing, The Swing, Dear Corporation, Mass Asia, Beam Mobility Korea, Ollullo, G-Bike, Flying, and PUMV.

The survey results showed that most providers obligated users to inspect electric scooters before use through their terms and conditions, but four companies did not provide any guidance on the items and methods to be inspected. Another four companies provided insufficient information about the inspection items or displayed it only on either the app rental screen or the device. As a result, in a survey of 800 users of electric scooter rental services, 72.9% responded that they were unaware of the terms requiring device inspection, according to the Consumer Agency.

Among the nine providers, four used transaction conditions that exempted them from responsibility for accidents caused by device problems. In the survey, only 32.2% of consumers were aware of such provider exemption clauses.

The providers also failed to properly inform users that even in permitted return zones, local governments may tow scooters if they are near braille blocks or crosswalks. In the case of Seoul Metropolitan City, a towing fee of 40,000 KRW is charged, and providers pass this cost on to consumers. The Consumer Agency added that disputes between providers and users are increasingly occurring due to this issue.

Additionally, some providers did not comply with the 7-day withdrawal period granted to consumers under the Electronic Commerce Act when purchasing usage tickets, or failed to clearly inform users that scooters parked outside the provider’s normal service area are in restricted zones when rented.

Based on the survey results, the Consumer Agency recommended that electric scooter rental service providers ▲guarantee the withdrawal period under the Electronic Commerce Act ▲strengthen guidance on electric scooter inspection items and methods ▲improve unfavorable transaction conditions such as provider exemption from accidents caused by device malfunctions. It was reported that four providers, including Dear Corporation, have agreed to partially accept these recommendations.

The Consumer Agency urged, "Please carefully review the transaction conditions such as device status before rental, service zones, and towing fee charges before using electric scooter rental services."