Civic Groups Demand State Antitrust Regulator Look into 'Unfair' Coupang Eats Contract Terms | Be Korea-savvy

Civic Groups Demand State Antitrust Regulator Look into ‘Unfair’ Coupang Eats Contract Terms


Civic groups call on Coupang Eats, a major food delivery platform, to come up with measures to protect businesses from ill-intentioned customers on June 22, 2021, in front of the company's headquarters in eastern Seoul. (Yonhap)

Civic groups call on Coupang Eats, a major food delivery platform, to come up with measures to protect businesses from ill-intentioned customers on June 22, 2021, in front of the company’s headquarters in eastern Seoul. (Yonhap)

SEOUL, June 28 (Korea Bizwire)Civic groups filed a complaint with the state antitrust regulator Monday to review “unfair” contract terms of Coupang Eats, a major food delivery platform, following the death of a restaurateur, who had been under stress over a bad reviewer.

Several civic groups, including the People’s Solidarity for Participatory Democracy, took the case to the Korea Fair Trade Commission (FTC), slamming the delivery giant for lack of protective measures for businesses from malicious reviews and outrageous demands from customers.

In late May, the restaurateur died after suffering a stroke earlier that month.

According to the civic groups, she was under enormous pressure over how to handle a customer who complained about the food delivered using the app and demanded a full refund.

Unlike other delivery applications, Coupang Eats does not allow businesses to write a reply to a review and does not have clear-cut guidelines for refunds, although managing one’s online reputation is a critical part of running a successful business.

Activists claimed that the case demonstrated the difficulties facing small businesses, which have to deal with unscrupulous reviewers without a proper communication outlet to do so.

And the delivery company, in turn, uses those reviews in evaluating businesses and can expel them from the platform.

They urged the FTC to thoroughly review Coupang Eats’ contract terms to guarantee fair business practices.

“Business owners have been left with no options but to accept excessive demands from consumers” in order to remain on the platform for survival, the activists said.

(Yonhap)

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