Beware of in-car black box sales gimmicks!

- Don't be swayed by free installation services -

  Consumers need to be aware of black box sales agents that cleverly maneuver consumers to make payments in credit cards using free installation gimmicks.

  The Korea Consumer Agency (www.kca.go.kr) reported the increasing number of consumer damages involving credit card payments after being fooled by in-car black box door-to-door sales agents using free installation gimmicks. A total of 244 cases were reported to the 1372 Consumer Counseling Center from 2012 to February 2015.

  In analyzing 208 cases where marketing gimmicks were found to be used, 83 cases (39.9%) involved 'prepaid calling card offers'. In detail, sales agents approached consumers by installing black boxes for free and then prompting them to purchase prepaid calling cards. However, the sales agents cut all communications without charging or partially charging the amount in the prepaid calling card.

  74 cases (35.6%) related to 'purchase recommendations using credit card reward points'. Sales agents obtained credit card numbers from consumers for the purpose of  checking accrued reward points by telling them that the points could be used to purchase black boxes and then arbitrarily charging payments.

  Also, 29 cases (13.9%) involved 'mobile phone bill payment channel changes' where sales agents offered free black box installations if consumers changed their mobile phone bill payment channel to credit cards and then arbitrarily charging payments. 22 cases (10.6%) related to 'refunding completed payments and offering free gasoline coupons' in which sales agents promised to refund the completed payment of black boxes to consumers' bank account for a certain period or offer free gasoline coupons, and later failed to fulfill such promises. 

  Of the 244 consumer damage cases, payments were made in 196 cases. By payment range, cases break down as follows: 1~2 million won($923~1,845) (99 cases or 50.5%), less than 1 million won (79 cases or 40.3%), and 2~3 million won (9 cases or 4.6%).

  By sales method, more than a majority of cases were associated with door-to-door sales (143 cases or 58.6%), followed by telemarketing (80 cases or 32.8%), and street vending (21 cases or 8.6%). 

  With regard to wrongful business practices committed by in-car black box sales agents, such as non-provision of contracts, refusal to cancel contract and failure to register as door-to-door sales business, the KCA plans to notify such facts to relevant institutions in order to prevent further consumer damages. 

   In order to prevent consumer damages stemming from sneaky marketing gimmicks, KCA made the following recommendations to consumers: ▲don't be swayed by free service offerings (e.g. free installations and free calling cards), ▲check whether door-to-door sales agents are licensed before signing contracts, ▲carefully go over contracts for any unfair provisions related to cancellations including cancellation charges, ▲take prudence on providing personal information such as credit card information and resident registration number (social security number), ▲request payment cancellation to door-to-door sales agents or credit card companies within 14 days from date of contract if the contents are different.