"End of Blind and Arbitrary Pricing"... Mandatory Disclosure of Sdeume and Pilates Fees Starting November 12

Fair Trade Commission Revises "Notice on Important Labeling and Advertising Matters"
Mandatory Advance Disclosure of Pricing and Refund Policies to Consumers

Starting from November 12, businesses offering wedding services such as studio, dress, and makeup packages (commonly referred to as "Sdeume"), as well as yoga and Pilates studios, will be required to publicly disclose their pricing and refund policies to consumers in advance. With the Fair Trade Commission revising and implementing the "Notice on Important Labeling and Advertising Matters," the previously opaque pricing system, often called "blind contracts," is expected to be improved.

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The Fair Trade Commission announced on November 11 that the revised "Notice on Important Labeling and Advertising Matters" will take effect from November 12. Under this revision, wedding venues, wedding dress studios, makeup service providers, and wedding planning agencies are now obligated to publicly disclose their pricing structures and refund policies.

According to the revised notice, businesses must post detailed information about their basic services, optional items, pricing, penalties for contract termination, and refund criteria on either their own website or the Korea Consumer Agency's "Chamka-Gyeok" (www.price.go.kr) portal.

Previously, engaged couples frequently raised complaints such as, "We can't find out the additional fees beyond the basic rate," "Costs unexpectedly increased when changing dress or photography options," and "Prices seem arbitrary." The implementation of this new system is expected to address and improve these practices and consumer complaints.

Yoga and Pilates business operators must also clearly specify the details of their services, pricing (including basic and additional fees), usage fees in case of early termination, and refund criteria on in-store postings and customer registration forms. This information must also be reflected in related advertisements.

Additionally, fitness centers, yoga, and Pilates businesses must indicate whether they have subscribed to surety insurance or similar consumer protection measures. If they have, they must provide specific information such as the name of the guarantor, coverage period, and coverage amount.

The Fair Trade Commission plans to operate a six-month guidance period to help businesses adapt to the new requirements. A Fair Trade Commission official expressed optimism, stating, "By strengthening information disclosure in the wedding service and fitness industries, which have long been in a regulatory blind spot, we expect to prevent consumer harm caused by 'blind contracts' and 'fly-by-night' operators."