Beware of Fraudulent Marketing Activities Providing Free Installment of Vehicle Black Boxes
 

Please be cautious if somebody calls or visits you and provides free installment of a black box in your car. Just as car audios, navigations, and gas savers that have recently been used as marketing tools, vehicle black boxes are being used by sales representatives to lure innocent consumers.

Recently, the number of consumer counsels is increasing rapidly related to fraudulent sales activities of pretending to provide consumers with vehicle black boxes for free, which requires consumers’ caution. Some salespeople act like they provide free installment of expensive black boxes as part of their promotion activities or special service for VIP consumers of some credit cards.

No. of Counsels related to Fraudulent Marketing Skills Providing Free Car in 2007

□ Vehicle Black Box Installment Obligation NOT Decided

Measures to make it an obligation to install black boxes to all cars were discussed by some policy makers. However, they have never become a legal obligation so far. Also, there is no quality test standard for car black boxes, which means it is simply a hype that anybody insists all drivers should install black boxes in their cars from 2008.

□ Consumer Cautions

1. Do not believe anybody who provides free installment of vehicle black boxes or who insists that the installment of car black boxes will become an obligation to all drivers from 2008. Especially, be aware of the fraudulent marketing skill that sales persons visit you in a group and one person explains you about the functions of car black box, while another person installs the device in your car, and later they force you to buy it on the ground that if once installed, the device cannot be detached.   

2. If once you somehow decide to purchase the product, confirm the important contents of the contract especially regarding the conditions for contract cancellation, and cancellation fee. If a salesperson promises you to allow you to cancel the contract any time, write it down and add it to a special contract condition and get a signature from the seller.

-- It is usually difficult to exercise consumers’ right to contract cancellation which is guaranteed under the Door-to-Door Sales, etc. Act, in case you buy car accessories. Once a product is installed, the sellers tend to refuse consumers’ cancellation request, insisting that the product value has been damaged.

3. If you want to cancel the contract, send “contents-certified mails” to both the seller and the credit card company within 14 days from the date of contract. If the seller refuses your cancellation request or demand unreasonable amount of cancellation fee, please consult with the Korea Consumer Agency.

-- Please refer to the “Cyber Counseling Service” on the left of the KCA Home Page for the relevant information including how to draw up a content certification. You can also download a document form.

4. When you buy a product, try to pay the money on an extended payment plan using your credit card. It is difficult to redress your damage after the lapse of contract cancellation period (14 days) or when the seller does not provide compensation for defaults, in case you paid money in cash or by card loan.

5. You can suspend the credit card payment by exercising your right to defend. If you cannot contact the seller, you have to immediately express your intention to the credit card company to exercise the right to defend in written form in order to reduce the damage.

** Buyers’ Right to Defend (Article 12 of the Installment Transactions Act)

1. In case credit card-affiliated businesses —either manufacturers or sellers—cannot perform their obligations and inflict any damage to consumers, credit card companies are accused for their negligence of managing their affiliates and take the responsibility. The right is applied only to the transactions involving credit card installment payment worth over 200,000 won for longer than 2 months period.
2. One-time credit card payment is not applied to the case. Consumers can exercise their right to defend only for the remaining amount of the installed payment, so it is important to notify the problem to the credit card company as quickly as possible.    

June 29th , 2007 [Consumer Dispute Settlement Department I]