Consumer Agency Dispute Mediation Committee Holds 3rd Deliberation
Approximately 9,000 Claimants
Civil Litigation Inevitable if Parties Reject Mediation Proposal
The collective dispute mediation case involving the travel-related industry, which suffered the greatest damage due to the delay in seller payment settlements by Tmon and Wemakeprice (TMEP) in the first half of this year, is expected to reach a final conclusion as early as this week. The case will determine how to allocate responsibility among the stakeholders, including outbound travel agencies (domestic travelers going abroad) that sold travel products through TMEP, electronic payment gateway (PG) companies that handled card payments, and TMEP itself. However, there remains a possibility that the parties involved may reject the mediation proposal and proceed to legal disputes.
According to the Consumer Dispute Mediation Committee of the Korea Consumer Agency on the 10th, the third review of the collective dispute mediation case concerning TMEP travel, accommodation, and airline products will be held on the 13th. The previous two reviews took place on the 8th and 29th of last month. At these sessions, the Consumer Dispute Mediation Committee heard explanations about the damage situations and positions of representatives of the stakeholders. In the third review, the committee, composed of the chairman and nine members, is expected to comprehensively examine these opinions and finalize the responsibility allocation rates.
The deadline for mediation by the Consumer Dispute Mediation Committee was extended twice after the collective mediation commencement decision on September 30 and is set until the 20th of this month. Earlier, the parties involved, including travel agencies and PG companies, requested the committee to clarify the refund responsibility through joint meetings related to TMEP travel product damages organized by the Ministry of Culture, Sports and Tourism and other relevant departments in August.
The travel agencies argue that the PG companies hold the payment amounts made by consumers who purchased travel products through TMEP, and unless this portion is canceled, refunds cannot be processed. On the other hand, PG companies claim that since some consumers proceeded with their trips as scheduled after payment, the travel agencies should be responsible for that part. It is known to be difficult to determine the responsibility allocation rate because the situations faced by consumers vary.
For example, some consumers made additional payments to travel agencies and traveled through direct transactions after problems occurred following product payment, while others have yet to receive any refunds and have had their travel plans canceled. Currently, more than 9,000 people who purchased travel-related products through TMEP have not received refunds for over four months. The victims are anxiously awaiting the decision of the Consumer Dispute Mediation Committee.
However, since the committee’s mediation lacks legal enforceability, if the mediation fails despite the allocation rates being finalized, the victims will have to proceed with civil lawsuits. The Korea Consumer Agency has included 100 million won in next year’s budget for litigation support costs, including lawyer fees and retainer payments, in preparation for cases where travel agencies and PG companies related to the TMEP incident refuse to accept the mediation proposal.
An industry insider predicted, "Even if the Consumer Dispute Mediation Committee issues a mediation proposal, the likelihood of the parties accepting the responsibility allocation rate seems low because each consumer’s damage situation is different, and there is a significant difference in positions among stakeholders who claim to have suffered damages."
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