"Payment Taken, Sellers Disappear"... Surge in Damages from SNS Live Commerce

Number of Consumer Consultations Related to Live Commerce
139 Cases in the First Half of This Year... More Than Double Compared to Last Year
"Refusal of Subscription Withdrawal" Accounts for Half of All Cases

As live commerce through social networking services (SNS) is gaining attention as a new purchasing method, consumer damages such as refusal of subscription withdrawal are also on the rise.

The Korea Consumer Agency announced on September 12 that over the past three years, there have been 444 consumer consultations related to live commerce reported to the 1372 Consumer Counseling Center, showing an increasing trend each year. In particular, 139 cases occurred in the first half of this year alone, more than doubling (104.4%) compared to the same period last year.

The most common reason for consultation was "refusal of subscription withdrawal," accounting for 49.5% (220 cases), making up half of all cases. Subscription withdrawal refers to the consumer's right to cancel a purchase and request a refund within a certain period (seven days for online transactions, fourteen days for door-to-door sales) after buying a product. This was followed by "quality issues" such as product defects at 21.6% (96 cases), and "contract non-fulfillment" at 18.5% (82 cases).

The main reason for disputes related to subscription withdrawal was "refund not allowed due to simple change of mind," accounting for 75.5% (166 cases). Other reasons included "avoiding contact" at 13.6% (30 cases) and "refusal to acknowledge initial defects" at 7.7% (17 cases).

Regarding the types of products involved in consultations, clothing such as jumpers, jackets, and coats accounted for 68.5% (304 cases). Bags, including handbags, made up 19.1% (85 cases), and shoes accounted for 3.4% (15 cases).

General online shopping malls provide detailed product information and exchange/refund policies on their sales pages. However, SNS live commerce only allows consumers to check detailed information via chat or voice communication, making it difficult to secure evidence in the event of consumer damages. In addition, many SNS live sellers do not register as telecommunication sales businesses or provide unclear information, which can make it impossible to contact the seller if problems arise after purchase.

The Korea Consumer Agency advised consumers to: ▲check whether the seller is registered as a telecommunication sales business and verify their business registration number and refund policy before purchasing; ▲avoid ordering or trading via messages or comments; ▲prefer safe transaction services or credit card installment payments over cash whenever possible; and ▲secure transaction records such as product descriptions or purchase-related screens in preparation for potential disputes.