KCA News & Media
Press Release
Press Release
| Cross-border consumer complaints increased by 3.7% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Date | 2008-04-28 | Hit | 3431 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cross-border consumer complaints increased by 3.7%
With the rapid growth in the number of overseas tour packages and online transactions, cross border consumer complaints also increased sharply.
According to the Korea Consumer Agency (www.kca.go.kr), the number of cross-border consumer complaints increased by 3.7% from 136 in 2006 to 507 in 2007. Claims related to personal goods (bags and shoes etc.) were most frequently reported, accounting for 96 cases, followed by clothes (76 cases).
According to 2007 cross-border consumer complaints analysis, the KCA advised consumers to be more attentive toward this matter to avoid preventable damages.
※ Cross-border consumer complaints
- Disputes between Korean consumers and the suppliers who are doing business in accordance with the laws or regulations of other country.
- Disputes between foreign consumers and the suppliers who are doing business in accordance with the laws or regulations of Korea.
【Case 1】In August 2007, a male consumer residing in Seoul purchased a toy through an American internet shopping mall (www.trojanstore.com) and transferred USD 110.60 to an online trading account. Two months passed and still no delivery, but there were no responses to his repeated refund requests.
【Case 2】In September 2007, a female consumer residing in Seoul purchased health supplements through an American internet shopping mall and transferred about KRW 226,000. Due to late delivery, the consumer requested a refund but it was refused. □ Cross-border consumer complaints are on the increase annually
Based on the analytical results of cross-border consumer complaints reported to the Korea Consumer Agency, the number of complaints was respectively, 87 in 2005, 136 in 2006 and 507 in 2007. In 2007, the number of claims increased by 3.7% to 507 cases compared to 2006 (136 cases).
Among 475 claims, online transactions accounted for 50.3% or 239 cases, followed by international transactions through purchasing agencies with 25.1% (119 cases) and direct transactions in the local area with 24.6% (117 cases).
□ Claims related to “personal goods and clothes” were most frequently reported
Among 451 claims, personal goods such as bags and shoes accounted for the largest proportion with 21.3% or 96 cases respectively, followed by clothes with 16.9%(76 cases), health foods with 10.6%(48 cases) and oriental medicine with 9.5%(43 cases).
Besides, 47 complaints related to fake branded products were also reported.
□ Countries of accused suppliers: U.S.A & China were most frequently reported
In analyzing 321 cases by country of accused suppliers, U.S.A took up the most at 88 cases (27.4%), followed by China at 69 cases (21.5%), Thailand & Australia at 26 cases (8.1%) each and Hong Kong at 24 cases (7.5%).
<5 Major countries involved in the cross-border consumer complaints>
□ Need to strengthen international cooperation to deal with cross-border consumer complaints
Cross-border consumer disputes are difficult to resolve since suppliers are located in other countries.
If cross-border consumer disputes occur, consumers can report the case by logging onto www.econsumer.gov in which 13 countries participate that are among the member countries of the International Consumer Protection and Enforcement Network (ICPEN). However, in reality, there are obstacles for consumers to receive proper redress.
The KCA is actively seeking to enhance international cooperation with relevant organizations to resolve cross border consumer disputes. In particular, the KCA will reinforce international cooperation with the consumer protection agencies of major countries involved in the cross-border consumer complaints. The KCA advises consumers to be more attentive toward this matter to avoid preventable damages as cross-border consumer claims are increasing.
◎ Make sure to thoroughly go over the information on the suppliers, refund and compensation policies.
◎ Remember to pay by credit card rather than by cash
◎ If cross-border disputes occur, report complaints through www.econsumer.gov or an Alternative Dispute Resolution (ADR) service provider located in a country where the business operates.
<for local transactions during overseas travel>
◎ Prior to contract conclusion with the domestic travel agency, check to see if the domestic travel agency is responsible for product exchange and refund, purchased in the local area during overseas travel.
◎ Purchase only reasonable priced souvenirs instead of expensive items at the stores, introduced by local travel agents.
◎ When buying expensive items, use credit cards for payment and make sure to keep a contract that includes exchange and refund policies so to be used as evidence if problems arise.
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