South Korea’s Fair Trade Commission (FTC) has taken action against four major K-pop merchandise retailers for unfair business practices. (Image courtesy of Yonhap)
SEOUL, Aug. 12 (Korea Bizwire) – South Korea’s Fair Trade Commission (FTC) has taken action against four major K-pop merchandise retailers for unfair business practices, highlighting growing concerns over consumer rights in the booming idol goods market.
The FTC announced on August 11 that it would issue corrective orders and impose fines totaling 10.5 million won on Weverse Company, YG Plus, SM Brand Marketing, and JYP360.
These companies operate the official online shopping platforms for what are known as the “Big 4″ entertainment agencies in South Korea: Hybe, YG Entertainment, SM Entertainment, and JYP Entertainment.
According to the FTC, these firms violated consumer protection laws by arbitrarily limiting refund and return policies for K-pop merchandise and albums.
Under current e-commerce regulations in South Korea, consumers have the right to cancel purchases within seven days of receiving goods, or within three months if defects are found.
This right extends even to cases where packaging has been opened to inspect the contents.
However, the companies in question implemented policies that restricted refunds once packaging was opened or limited exchanges and returns to within seven days, even for defective products.
Some items were classified as “custom-made” to avoid refunds, despite being essentially pre-order products.
In a particularly egregious case, one company required customers to provide video evidence of the unboxing process to qualify for exchanges or refunds if items were missing from the package. This effectively shifted the burden of proof for product defects onto the consumer.
Weverse Company, which manages merchandise for global K-pop sensation BTS, among others, was also cited for vague delivery timeframes.
For some products, including membership kits, the company used ambiguous phrases like “sequential shipping within the next quarter based on purchase date,” making it difficult for consumers to anticipate when they would receive their orders.
The FTC deemed these practices as obstructing legitimate consumer rights to cancel purchases and violating obligations to provide clear information on transaction terms.
“We will continue to monitor violations of e-commerce laws in youth-oriented sectors such as idol merchandise,” an FTC spokesperson stated. “Repeated violations will be subject to severe penalties.”
Ashley Song (ashley@koreabizwire.com)
