Consumer Complaints and Damage Claims Related to Online Subscription Services on the Rise | Be Korea-savvy

Consumer Complaints and Damage Claims Related to Online Subscription Services on the Rise


Under current laws, digital content-related contracts can be cancelled within seven days of the date of signing as long as the promised content is not offered. (image: Korea Bizwire)

Under current laws, digital content-related contracts can be cancelled within seven days of the date of signing as long as the promised content is not offered. (image: Korea Bizwire)

SEOUL, Jan. 28 (Korea Bizwire)Along with the rising popularity of online subscription services that offer a variety of digital content such as music and movies, the number of consumer complaints and damage claims related to such services is growing steadily, a consumer watchdog said Wednesday.

The number of consumer complaints and damage claims for online subscription services filed during the period from 2018 to 2020 totaled 609 cases, according to the Korea Consumer Agency (KCA).

By item, video content accounted for the largest share at 22.3 percent. By type, complaints about contract cancellations and cancellation fees grabbed the largest share at 35.8 percent.

As a result of the KCA’s inspection of 25 digital content subscription services that are offered on a monthly regular payment basis through the Google’s Play Store and Apple’s App Store, a total of 18 apps turned out to placing restrictions on cancellations.

Under current laws, digital content-related contracts can be cancelled within seven days of the date of signing as long as the promised content is not offered.

However, six out of the 18 apps have terms and conditions that restrict users’ rights by enabling them to cancel the contract only when there is no record of use after the subscription starts.

The remaining 12 apps follow the refund policy of Google Play Store, which means users have to cancel the contract within two days of the date that it was originally agreed to.

Only four out of the 25 apps provide a refund for the remaining period when consumers cancel their subscriptions.

Lina Jang (linajang@koreabizwire.com)

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