Going forward, postpartum care centers will be held liable for damages if mothers or newborns contract infectious diseases while staying at the facility. Consumers will also be able to freely access honest user reviews online, and the regulations regarding deposits and cancellation fees will be improved to be more reasonable, calculated in proportion to the length of stay.
On September 24, the Korea Fair Trade Commission announced that it had reviewed the terms and conditions of 52 postpartum care centers and rectified five types of unfair clauses. The most frequently identified issue was clauses related to liability for infection. Of the 52 centers reviewed, 37 had explicitly stated in their terms that they would not be responsible if mothers or newborns contracted infectious diseases, arguing that they are not medical institutions. Liability for damages was also limited to cases where the center’s fault was clearly proven. The commission determined that this violated the intent of the Mother and Child Health Act and the Act on Regulation of Terms and Conditions, and revised the terms to require centers to compensate for damages if consumers provide documentation such as a medical certificate or a receipt for medical expenses.
Clauses that were disadvantageous to consumers regarding cancellation fees and deposit refunds were also significantly revised. Thirty-three centers had refused to refund deposits unless cancellations were made at least three months before the scheduled admission date, or denied refunds for early departures during the stay. From now on, cancellation fees must be calculated in proportion to the length of stay, and full refunds must be provided either within 24 hours of contract signing or at least one month before admission. If the contract is terminated for reasons attributable to the business, the center will also be responsible for additional compensation.
In addition, all clauses (found in seven centers) that prohibited users from posting reviews online have been deleted. The commission emphasized that reviews are an important tool for mothers to make informed choices and highlighted the importance of protecting consumer choice. Other improvements include ▲ refunding the difference in fees if a substitute room is used due to a change in the delivery date, and ▲ clarifying the business’s liability for intentional or negligent loss of personal items within the center.
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