"Tempted by Tablet Offer..."...Check 'This' When Canceling Online Learning Materials [Hutdari Economy]

(26) You Must Accurately Understand Cancellation Policies to Minimize Damage

Editor's NoteMany people thought they were engaging in smart economic activities to get better outcomes, but it often turned out to be a misstep. When deceived by corporate marketing or blinded by momentary gains, wrong decisions ultimately harm consumers. We aim to examine economic activities where people have made mistakes by misjudging everyday situations.

As more children and adults learn using tablets, complaints from consumers related to this have surged. If long-term contracts are signed without properly reviewing the tablet usage terms, unexpected fees must be paid upon early termination due to a change of mind.

The Consumer Agency has received a total of 347 damage relief requests related to internet education services including workbooks from January to May this year. The numbers have been increasing yearly: 588 cases in 2021, 592 in 2022, and 947 in 2023.

A member of an internet mom caf? shared that regarding their child's learning at Kumon, they paid 198,000 KRW monthly including the tablet device and tuition fees, but upon cancellation, they had to pay early termination fees that were not explained at the time of contract. The monthly tablet communication fee of 18,000 KRW included a 5,000 KRW discount, so upon early termination, all the discounts received had to be returned. Ultimately, this member had no choice but to pay 65,000 KRW for 13 months with great reluctance. The workbook provider drew a line, stating that early termination fees are managed by the tablet company and they could not assist.

There are many online learning services advertising that they give the latest MacBook, iPad, etc., when adults take lectures. I personally received a consultation from an online workbook service that promised a MacBook Air as a gift for attending lectures.

The consultant emphasized that it was the last chance to get a 7-day free trial with seasonal benefits including discount coupons. They warned that prices would increase by 200,000 to 300,000 KRW starting the next day, so now was the cheapest time. According to the education service’s website (which does not provide the MacBook Air), the lecture costs 129,000 KRW per month for 12 months, but with a 300,000 KRW benefit, it was explained that the total would be 1,248,000 KRW, meaning only 104,000 KRW per month.

They said that if you pay 116,000 KRW monthly for 24 months, totaling 2,784,000 KRW, you could get the MacBook Air for free. Even with an additional approximate 100,000 KRW discount applied via card, the difference compared to just taking the lecture was about 1.5 million KRW. Later, I found that according to the Frisbee website, the lowest price for that MacBook Air was 1,383,300 KRW. Although MacBook Airs, iPads, etc., are advertised as services, in reality, it is no different from paying the full retail price with installment plans.

When consumers sign long-term contracts and terminate early, they must pay the device price separately as set by the workbook company and also return all discounts received. When asked in advance about the amount payable upon early termination, the consultant avoided detailed explanations, saying "This is handled by the customer center, so it is difficult to provide detailed information."

Professor Kim Si-wol of Konkuk University’s Department of Consumer Studies said, "It is mandatory to notify refund policies regarding discounts or products received as services," and added, "The Fair Trade Commission should regularly review issues and protections related to terms and conditions for both consumers and sellers." Professor Kim advised consumers to carefully understand refund policies when reviewing terms and cautioned, "Consumers should also be wary of sellers’ words or actions that pressure their choices."