"You Said There Were No Defects"... Are Person-to-Person Secondhand Disputes Outside the Law? [Misconceptions about Money]

Editor's NoteIssues related to money are among the most frequently encountered in daily life, yet it is often difficult to know the exact standards. Many people suffer unnecessary losses due to information accepted as common practice or widely misunderstood facts. [Misconceptions about Money] organizes common misunderstandings about financial matters in everyday life-such as taxes, fees, contracts, and refunds-based on public data and official standards.

"Refunds are difficult because this is a transaction between individuals."

This is a phrase you are likely to hear at least once when engaging in secondhand transactions. It is easy to assume that the platform is merely a broker and that the seller is an individual, so legal responsibility is difficult to pursue.

There is also a strong perception that when transactions are conducted directly or via bank transfer, it is difficult to receive protection if problems arise. However, private transactions are not outside the boundaries of the law just because they occur between individuals. Legal responsibility can vary depending on the nature of the transaction and the details of the description.

No lawsuits in person-to-person transactions?

Because secondhand transactions are contracts between individuals, not businesses, there is a strong perception that "each party is responsible for themselves." In reality, requests for refunds simply due to a change of mind are often not accepted. However, the situation changes if the seller was aware of a defect in the item but failed to disclose it, or provided information that was not accurate.

Illustration generated by AI. ChatGPT

For example, if an electronic device described as "fully functional" actually had a major malfunction, the matter could escalate beyond a simple transaction and become a legal dispute. If it can be proven that the product description differs from the actual condition, the buyer may be entitled to cancel the contract or claim damages.

In fact, there have been many cases where secondhand transaction disputes between individuals have led to small claims lawsuits. This typically happens when a buyer requests a refund due to a defect in the product, but the seller refuses, resulting in legal proceedings.

According to actual court rulings, responsibility is determined by considering factors such as the listing content at the time of the transaction, chat records, and the timing of the defect's occurrence. In one 2022 case where the buyer demanded the return of the purchase price, claiming liability for defects, the court stated, "Under the Civil Act, the buyer may terminate the contract only if the defect in the object of the sale makes it impossible to achieve the purpose of the contract."

This demonstrates that not all responsibility is automatically waived just because it is a "private transaction." Ultimately, the key factor is whether the description at the time of the transaction matches the actual condition. Screenshots of the listing, chat records, and bank transfer history can serve as crucial evidence in the event of a dispute.

Is the platform completely free of responsibility?

Secondhand trading platforms essentially function as intermediaries for person-to-person transactions. The parties to the contract are the seller and the buyer; the platform itself is not the direct seller.

However, there is ongoing debate about whether the platform is completely free from responsibility. The Korea Fair Trade Commission has been working to strengthen platform obligations regarding information provision and dispute resolution in the e-commerce environment. If seller information is unclear or if platforms fail to properly manage accounts suspected of repeated fraud, controversy can arise over user protection responsibilities.

Disputes related to secondhand transactions reported to organizations such as the Korea Consumer Agency have also been steadily increasing. An analysis of 2,790 consultations related to secondhand trading platforms received by the 1372 Consumer Counseling Center from 2019 to 2021 showed that the most common complaint was "discrepancy with product information provided in advance," accounting for 32.4% (903 cases), followed by "refund refusal after order cancellation" at 13.5% (376 cases), and "non-delivery or unilateral contract cancellation after purchase" at 11.5% (322 cases).

If one of the parties to the transaction is a business, the Electronic Commerce Act allows the consumer to exercise the right of withdrawal. Three out of four major secondhand trading platforms (Bungaejangter, Junggonara, and HelloMarket) allow sales by businesses (professional sellers), and distinguish between individual and business sellers by requiring business registration information or providing separate sales sections for businesses.

However, a monitoring survey by the Korea Consumer Agency found numerous cases where businesses disguised themselves as individual sellers in their listings. In such cases, even if the platform is for secondhand trading, if the seller is a business, consumers can exercise rights under the Electronic Commerce Act, such as the right of withdrawal. Therefore, platform operators need to thoroughly verify the seller's business status and strengthen the provision of business information to ensure consumers are protected under relevant laws.

Secondhand transactions are a reasonable form of consumption, but the phrase "between individuals" does not serve as a shield against responsibility. If an item is sold with undisclosed defects or in a condition different from what was described, the seller may be held accountable. The most practical way to minimize disputes is to carefully check the condition of items before buying and to keep a record of the entire transaction process.

This content was produced with the assistance of AI translation services.