Consumer complaints involving pre-paid data service for online contents such as music and movies increased ten fold compared to last year. This prompted the Korea Consumer Protection Board (KCPB) to analyze the 220 relevant cases reported between January and May of this year. 4 out of 5 consumers who were victimized were found to have used the mobile small payment system, which reflects the urgent need to improve the mobile small payment system. 

 

Type of Damage	Number of Cases (%)	Type of Damage	Number of Cases (%)
Transferring to paid subscriber after luring consumers with free calling services	82 (37.3)	Automatically prolonging contract period after its termination	15  (6.8)
Transferring to paid subscriber without consumer consent after subscribing them as free members	71 (32.3)	Unsatisfying quality	7   (3.2)
Failing to perform contractual obligations	23 (10.5)	Others	22   (10.0)

 

■ Most complaints involve transferring consumers to paid subscribers after luring them with free services 

 

Consumers tend to be easily lured into participating in events that provide free services such as free calling services. In the process of entering cell phone numbers for verification, consumers have no idea that payment is being made. 

 

Mobile small payment system is widely used as the ID verification process is easy. Most consumers who receive the verification number to use online data service through their cell phones mistakenly takes it for ID verification to subscriber when in truth, payment has been made.

 

■ Free subscribers transferred to paid subscribers without prior consent 

 

After getting consumers to use certain services for free for a week or a month, consumers find themselves having become paid subscribers if not having ended the free services prior to its termination period. 

 

■ Subscription prolonged without consumer consent after termination of contract 

 

Last year, Consumer damage cases related to contract extension without consumer consent involved the installation of anti-virus computer programs, and the number is continuously on the rise. The problem is that the service contract is extended without consumer consent it there is no request for termination in advance and mobile payment is still made through the verification number. 

 

■ Need to establish compensation criteria on unsatisfying quality of online contents 

 

The number of complaints involving poor online contents is steadily increasing. Complaints relating to unsatisfying quality are compensated in accordance with the Act on Consumer Protection in E-Commerce and the 「Competition Criteria on Consumers’ Damages」. 

 

However, it applies to cases involving general online transactions or use of line education services. The rules cannot be applied to music/movie download services where there is currently insufficient information. Therefore, a separate compensation criteria is required. 

 

Source: Consumer Dispute Settlement Department II