Brand Sneaker Discount Sales Deception
Repeated Cases of Additional Charges Under Subscription Service Name
Korea Consumer Agency Issues Overseas Shopping Mall Damage Warning
#Mr. A encountered an advertisement on the social networking service (SNS) Facebook last March, offering 'New Balance 530 sneakers' for 2,700 KRW. Attracted by the ad, he accessed the page, participated in a lottery game, and received a notification that he had won the sneakers. He paid 1.95 euros (approximately 2,700 KRW) by credit card for the sneakers. However, 11 hours later, an additional 49.50 euros (approximately 69,000 KRW) was charged under the name of a subscription fee, and although Mr. A requested a cancellation, he was ultimately unable to get a refund.
Recently, there has been an increase in damages related to overseas shopping malls that advertise discounted sales of popular brand sneakers to induce credit card payments, then arbitrarily charge additional amounts under the guise of subscription services. The Korea Consumer Agency has issued a damage warning regarding this issue.
The Consumer Agency announced on the 8th that since the first case of such damage was confirmed in February this year on its internationally operated consumer transaction portal, a total of 11 cases have been reported up to last month. Most consultations involved cases similar to Mr. A’s, where consumers were induced to purchase by being told they won a lottery game, then faced additional charges under the name of subscription fees. Among these cases, some involved subscription fees amounting to 25 times the price of the sneakers. Furthermore, most sellers either delayed responses or refunds when consumers requested reimbursement.
The overseas shopping malls where damages occurred were connected through SNS advertisements on platforms such as Instagram and Facebook, so consumers did not know the URL and could not find them through searches. The Consumer Agency emphasized, "If it is an overseas shopping mall you are encountering for the first time, you should check for any damage cases through the international transaction consumer portal or internet searches and make purchasing decisions cautiously."
As consumer damages continue through SNS advertisements, the Consumer Agency plans to request Meta Platforms Inc., which operates Instagram, Facebook, and others, to take measures to prevent consumer damages. Additionally, to prevent damages, consumers are advised to use credit (or debit) cards that allow chargeback services when shopping at overseas malls and to seek help from the international transaction consumer portal if disputes are not resolved smoothly.
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