The Korea Fair Trade Commission at the Government Complex in Sejong City. [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]
South Korea’s competition watchdog has ordered changes to what it called unfair terms that limited refunds for paid performance memberships, including clauses that blocked annual-fee refunds after a single use of discount or early-ticket benefits. It also moved to fix terms that made it easy to join online but required cancellation only by phone.
The Korea Fair Trade Commission said Tuesday it reviewed membership terms used by 19 venues and ticketing platforms, including the Seoul Arts Center and Lotte Concert Hall, and required corrections to unfair provisions. The review was conducted to prevent consumer harm as public interest in culture and the arts has grown.
According to the FTC, some operators had maintained clauses stating refunds were not allowed once service began. Lotte Concert Hall specified that refunds were unavailable if a paid member had received benefits, while Gangneung Arts Center said refunds were not allowed after 15 days from sign-up or if there was any booking history.
The FTC said using membership benefits alone does not necessarily mean the operator suffers losses equal to the full annual fee. It required terms to allow full refunds within 14 to 30 days of joining, while permitting only a penalty equivalent to the benefits used to be deducted, with the remainder returned.
The agency also cited cases of excessive deductions during refunds. The Seoul Arts Center deducted both an amount based on elapsed time and a fee after two weeks, and the National Gugak Center said refunds were not allowed if the value of discounts exceeded the membership fee. The FTC said such clauses infringed on consumers’ legitimate refund rights and required revisions so that only the larger of the amount corresponding to the period of use or the value of benefits provided can be deducted.
Unfair limits on how members could cancel or withdraw were also targeted. Lotte Concert Hall and Interpark allowed sign-ups through easy channels such as online registration but required withdrawals to be made only by phone. The FTC said that improperly restricted how customers could express their intent and ordered changes to allow withdrawal through various methods, including online, phone and written requests.
The FTC said it also corrected clauses covering exemptions from liability when user fault overlaps, unilateral deletion of member posts without a chance to explain, and unfair refusals of membership or limits on service use.
Kwak Go-eun, director of the FTC’s Division for Standard Form Contracts and Special Transactions, said the changes are expected to reduce consumers’ burdens during refunds. She said the FTC will continue to inspect and correct unfair contract terms and trading practices in areas closely tied to daily life.
The Korea Fair Trade Commission said Tuesday it reviewed membership terms used by 19 venues and ticketing platforms, including the Seoul Arts Center and Lotte Concert Hall, and required corrections to unfair provisions. The review was conducted to prevent consumer harm as public interest in culture and the arts has grown.
According to the FTC, some operators had maintained clauses stating refunds were not allowed once service began. Lotte Concert Hall specified that refunds were unavailable if a paid member had received benefits, while Gangneung Arts Center said refunds were not allowed after 15 days from sign-up or if there was any booking history.
The FTC said using membership benefits alone does not necessarily mean the operator suffers losses equal to the full annual fee. It required terms to allow full refunds within 14 to 30 days of joining, while permitting only a penalty equivalent to the benefits used to be deducted, with the remainder returned.
The agency also cited cases of excessive deductions during refunds. The Seoul Arts Center deducted both an amount based on elapsed time and a fee after two weeks, and the National Gugak Center said refunds were not allowed if the value of discounts exceeded the membership fee. The FTC said such clauses infringed on consumers’ legitimate refund rights and required revisions so that only the larger of the amount corresponding to the period of use or the value of benefits provided can be deducted.
Unfair limits on how members could cancel or withdraw were also targeted. Lotte Concert Hall and Interpark allowed sign-ups through easy channels such as online registration but required withdrawals to be made only by phone. The FTC said that improperly restricted how customers could express their intent and ordered changes to allow withdrawal through various methods, including online, phone and written requests.
The FTC said it also corrected clauses covering exemptions from liability when user fault overlaps, unilateral deletion of member posts without a chance to explain, and unfair refusals of membership or limits on service use.
Kwak Go-eun, director of the FTC’s Division for Standard Form Contracts and Special Transactions, said the changes are expected to reduce consumers’ burdens during refunds. She said the FTC will continue to inspect and correct unfair contract terms and trading practices in areas closely tied to daily life.
* This article has been translated by AI.
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