KCA News & Media
Press Release
Press Release
| E-commerce Consumer Damages rise by 23.3% y-y | |||||||||
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| Date | 2010-07-26 | Hit | 2387 | ||||||
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E-commerce Consumer Damages rise by 23.3% y-y,
about four times as high as e-commerce (B2C) scale growth (6.0%) - ‘Contract Cancellation & Termination’ Damages on the Rise, related to low-priced goods including ‘Garments and Personal Items’ –
Consumer damage complaints related to e-commerce filed to Korea Consumer Agency last year amounted to 3,799 cases, a 23.3% growth y-y (compared to 3,080 cases in 2008). The 23.3% growth is near four times the e-commerce (B2C) size growth (+6.0% y-y).
The Korea Consumer Agency (President: Kim, Young-Seen, www.kca.go.kr) conducted an analysis on consumer damage cases related to e-commerce reported to the KCA last year and found that the most claims (1,489 cases or 39.2%) were made for ‘Garments and Personal Items’.
By damage type, ‘Contract Cancellation & Termination’ took up about half (46.9%) of the claims made in total. Meanwhile, purchase price for damage goods and services coming under the category of ‘Low Price below W100,000’ accounted for 47.4%.
More women (53.7%) were victimized by e-commerce damages compared to men (46.3%) as they were using online shopping more often. Meanwhile, by age group, most of damages occurred to consumers at their twenties (40.2%) and thirties (37.9%).
Based on these results, the KCA is going to make a recommendation to lower the current minimum standard of price (W100,000) of goods that are subject to applying to the Escrow (payment deposit system) to prevent currently-rising consumer damages due to ‘Contract Cancellation and Termination’ of low-priced goods. In addition, the KCA plans to strengthen information-provision to consumers such as regular disclosure of information about goods and business operators of frequent consumer damages in order to protect consumers from e-commerce consumer damages.
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