Consumer Agency Issues Year-End 'Damage Warning'
Beware of Overseas Direct Purchase Malls Exposed on SNS
"Fraud Damage Concentrated in November-December"
Mr. A, who frequently shops online overseas, saw an advertisement on Instagram last November stating that an overseas shoe brand was offering about an 89% discount for Black Friday, and purchased six pairs of shoes for approximately $148. However, there was no procedure to enter a customs unique code at the time of purchase, and the business information was unclear, so he requested a cancellation. Then, the business contact was lost, and the site was closed, so he could not receive the ordered items.
The Korea Consumer Agency announced on the 18th that it expects an increase in consumer damages related to overseas direct purchases during the year-end period when large-scale discount events such as the U.S. Black Friday (November 29), Cyber Monday (December 2), and the U.K. Boxing Day (December 26) take place overseas, and issued a damage advisory to prevent such incidents.
According to the Consumer Agency’s International Trade Consumer Portal and the Fair Trade Commission’s 1372 Consumer Counseling Center, a total of 290,834 consultations regarding overseas direct purchase online product purchases were received over the past three years. Among these, consultations in November and December accounted for 19.8% (5,916 cases), representing the largest proportion.
By reason for consultation, "cancellation, refund, and exchange delays or refusals" accounted for the largest share at 24.2% (1,429 cases), followed by "non-delivery and delivery delays" at 21.5% (1,269 cases), and "product defects, quality, and after-sales service" at 19.8% (1,174 cases).
By product category, clothing and shoes accounted for the largest share at 49.8% (2,948 cases), followed by IT and home appliances at 9.9% (583 cases), household goods at 7.0% (417 cases), and hobby goods at 6.9% (408 cases). The Consumer Agency explained that consumers tend to purchase clothing and shoes as year-end overseas direct purchase items, and many consultations related to fraudulent shopping malls impersonating fashion brands have been concentrated accordingly.
Since many brands hold discount events at the end of the year, consumers should be cautious of fraudulent shopping malls imitating official shopping malls. In particular, fraudulent shopping malls impersonating brands often use the brand name, logo, and product photos as they are, and use web designs and internet addresses (URLs) similar to official websites, making it highly likely for consumers to be misled, the Consumer Agency added.
Status of Overseas Direct Purchase Online Product Purchase Consultations. Provided by Korea Consumer Agency
Fraudulent shopping malls often lure consumers with high discount rates, then fail to deliver products or deliver counterfeit or low-quality products, and subsequently cut off contact or close the site. Most victims accessed fraudulent shopping malls through Instagram and YouTube advertisements, so users of these social networks (SNS) need to be especially cautious. Regardless of the purchase amount, weight, or region, cases offering free international shipping or returns should be suspected as scams. Additionally, consumers should be wary if uniformly high discount rates are applied to all products regardless of popularity or if all products are available for purchase without any sold-out items.
The Consumer Agency urged consumers using overseas direct purchases during global year-end discount events such as Black Friday to ▲verify whether the shopping mall accessed through SNS advertisements is operated by the brand or official distributor ▲be suspicious of excessive discount rates ▲use credit (or debit) cards to prepare for potential damages.
Meanwhile, if damages occur during the overseas direct purchase process and problem resolution is difficult, consumers can apply for counseling through the International Trade Consumer Portal.
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