Increase in Consumer Complaints Related to TV Home shopping

-Be cautious about applying for insurance as requests of consumer redress increase-

  As the market of TV home shopping rapidly grows due to advantages of real-time broadcasting, details of products, convenient order systems, etc., relevant consumer complaints and damages have increased so that consumers need to be cautious.

  During recent 3 years, consumer complaints and damages related to TV home shopping continuously multiply, as number of consumer redress related to TV home shopping received by Korea Consumer Agency(www.kca.go.kr) increased by 37.5%, from 272 in 2011 to 374 in 2013.

* According to 1372 consumer counseling center, consumer counseling associated with TV home shopping increased by 43.1%, 10,969 in 2011 to 15,702 in 2013.

▣ The top damage was related to ‘Quality and A/S’  

   Based on the result of analyzing 926 cases of consumer damages during recent 3 years(2011~2013), The top damage was ‘Poor quality or A/S' (414 cases or 44.7%) followed by ‘Refusal of terminating and cancelling a contract or excessive charge of cancellation fee'(156 cases or 16.8%), ’exaggerated or false contents of advertisements'(144 cases or 15.6%), and ’Safety issues, such as generating side effects, etc.'(50 cases or 5.4%).

< Current Condition of TV Home Shopping by Types of Damages >

(Unit : No., %) 

 ▣ The highest number of cases of damages was linked to 'Insurance' 

  During the same period time, the product related to the top damages was 'Insurance'(65 cases or 7.0%), followed by 'Clothes’(56 cases or 6.0%), ‘Renting water purifiers’(50 cases or 5.4%), ‘Travel’(43 cases or 4.6%), ‘Smart phone'(40 cases or 4.3%), etc.

   The insurance which has the highest rate of consumer damages was insurance of illness and occupational accident accounted for 84.6% or 55 cases. Major damages are ▲ no explanation of disadvantages or wrong explanation of contracts, ▲ easy approval of applying for insurance, but refusal of paying insurance led by a lack of qualification, ▲ no free gifts after receiving insurance counseling, etc.

 * It is possible to sell insurance via TV home shopping in developed countries, but no countries actually sell insurance via home shopping due to problems such as compensation caused by misselling.

   The KCA planned to suggest relevant authorities to enhance regulations on advertisements of TV home shopping insurance(homesurance) by reinforcing quality assurance responsibility of TV home shopping businesses to prevent consumer damages related to TV home shopping, and releasing contents of advertisements preserved in a certain period of time to the public, when selling insurance, etc.