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Title: Cancellation of oral agreements made through direct selling
 
Q) After getting constant telemarketing calls for hours at work, I agreed to pay 1.02 million KW (24-month installment payment) for a 3-year subscription to a magazine. The magazine arrived two days later. I feel that the subscription fee is way too expensive and that I made the decision on impulse. How can I resolve this issue?
  A) Contract cancellation can be requested. In accordance with the ‘Door-to-Door Sales Act', direct selling refers to the act of selling products and signing contracts by phone. Direct selling is similar to that of door-to-door sales so the provisions on registration of direct selling companies, obligation to provide contracts and contract cancellations are identical to that of door-to-door sales. Therefore, contract cancellation may be expressed in written form and sent to the relevant enterprise or credit issuer by post mail 14 days from the date after receiving the contract if having purchased through direct selling and within 14 days from the date of receiving the product if it was delivered later than the contract.

Title: Efficacy of special clause on no-return policy related to door-to-door sales
 
Q) A few days ago, I made a credit card purchase for a children’s study material from a door-to-door seller. I later came to find the contents unsatisfying and requested cancellation. The contract stipulates that cancellation without penalty was possible within 7 days. But under the special clause, it states ‘no cancellation’ and ‘reimburse up to 40% upon cancellation’. Even though 7 days have not passed, do I have to reimburse 40% if I cancel?
  A) Cancellation can be made. In accordance with Article 52 of the ‘Door-to-Door Sales Act’, there are provisions on consumer’s cancellation request and door-to-door seller’s reimbursement policy. Any provisions or clauses which go against the Act are considered ineffective. In general, contract obligations must be fulfilled by both parties but customers are protected under this provision. So you don’t have to reimburse the 40% stated in the special clause.

Title: Countermeasures for delay in collecting cancelled products
 
Q) I made a credit card purchase for a study material by visiting the company advertised in the paper. The following day, I notified the company via certified mail of my wish to cancel. But the company is refusing to do so. I haven’t made the initial payment but the company keeps on billing me and refusing to accept returns. A month has passed on. What happens if continue to keep the product?
  A) Contact a consumer protection agency for help. In accordance with the Installment Transactions Act, if having purchased a product priced over 100,000 KW (over 200,000 KW for credit card payment) and agreed to pay based on a 3-month installment plan, cancellations can be made from the date of receiving the contract and if not, within 7 days from the date of product delivery. After sending a written form requesting cancellation within 7 days of signing the contract, the product shall be returned and the company shall return the amount already paid. In this case, the company shall bare the return fee and cannot charge penalty or claim compensation to the consumer. Therefore, the company is solely responsible for the delay in collecting the cancelled product. However, if the product is damaged while in your possession, the company may likely request compensation. So it is best to return it as soon as possible and if this is difficult, you can seek help from a consumer protection agency.

Cancellation of unpackaged products
 
Q) I purchased a study material for children from a door-to-door seller. An hour later, the seller returned with the product. She tore the vinyl wrapping and took the packaging box for recycling. But due to my husband's opposition, I called the company to cancel but it refused stating that the product had already been opened. What do I do to cancel the product?
  A) The burden of proof lies with the door-to-door seller if the product is damaged. According to the Door-to-Door Sales Act, consumers can request cancellation to businesses by sending your request via certified mail from the date of receiving the contract or if having not received the contract, within 14 days from the date of product delivery. In this case, there are businesses which refuse to accept cancellation requests stating that the product has been damaged. If disputes occur between a consumer and business on the burden of proof on who's to blame for the product damage, it is the business that shoulders the burden of proof. Under Article 8 (Contract Cancellations) Section 2.1 of the Door-to-Door Sales Act, cancellations cannot be made for products destroyed or damaged due to the consumer's reasonable fault. Provided, in the case of damage to packages while checking to see the product contents, it shall not apply.

Giving Out Credit Card Number to Telemarketers
 
Q) Recently, I replied to a phone survey on cosmetic products. A few days later, I received the call that I would be receiving free cosmetics as a thank you gift for participating in the survey. The telemarketer requested my address, name and credit card number (to check my credit status), and explained that I would be receiving lifetime membership discounts. However, three weeks later, I found that 720,000 KRW was charged to my credit bill for membership fee. What do I do?
  A) Immediately send a payment cancellation request via certified mail to the telemarketer and the credit card company. Cancellation requests can be made within 14 days for telemarketing as well as door-to-door sales. Telemarketers tend to claim that contract-based transactions were made as the consumer provided their credit card number. Except in cases the telemarketer asks the consumer whether he is willing to sign a contract, only giving out credit card numbers doesn't mean transactions have been made. The burden of proof goes to the telemarketer.

Title: Refusing to Accept Returned Merchandise
 
Q) Recently, I purchased a steam vacuum cleaner from a home shopping channel and paid for it in cash. I wasn't satisfied with the merchandise so ten days later, I requested cancellation and wished to return it. But now, the company is refusing to accept my request. What do I do?
  A) In accordance with the Act on Consumer Protection in E-Commerce, cancellation request can be made within 7 days from the date of receiving the product. In the case of late deliveries, cancellation request can be made within 7 days from the date the product was received. Cancellation requests can be sent via certified mail to prevent unnecessary disputes. So in this case, cancellation can't be made.