South Korea's 'Smart Order' Alcohol Services Face Scrutiny Over Age Verification | Be Korea-savvy

South Korea’s ‘Smart Order’ Alcohol Services Face Scrutiny Over Age Verification


'Smart order' services, which allow customers to order alcohol online and pick it up at offline stores, are under fire for potentially lax age verification procedures. (Image courtesy of Yonhap)

‘Smart order’ services, which allow customers to order alcohol online and pick it up at offline stores, are under fire for potentially lax age verification procedures. (Image courtesy of Yonhap)

SEOUL, Oct. 11 (Korea Bizwire) – A new convenience in South Korea’s bustling alcohol market is raising concerns about underage drinking. ‘Smart order’ services, which allow customers to order alcohol online and pick it up at offline stores, are under fire for potentially lax age verification procedures, a consumer watchdog group reported on October 10. 

The Korea Consumer Agency (KCA) investigated nine businesses offering smart order alcohol services and found significant gaps in their adherence to regulations designed to prevent minors from accessing alcohol.

A 2020 revision to South Korea’s regulations on alcohol sales mandates that only the person who placed the order can collect the purchased alcohol, a measure intended to prevent underage proxy collections.

All surveyed businesses claim to inform customers of this requirement and the need for identification upon pickup. 

However, the KCA’s field investigation revealed that only three out of nine businesses — Bottle Shop, Wine Grab, and Homeplus Liquor Easy Pickup — actually verified customer IDs at the point of collection. The remaining six, including major convenience store chains like CU and 7-Eleven, failed to implement this crucial step.

“The exchange vouchers provided by six of these services can be easily screenshot and shared, underscoring the need for stricter in-store ID checks,” a KCA spokesperson noted. 

The investigation also highlighted concerns about unrestricted access to alcohol product information. Most services allow minors to download their apps and view alcohol products and prices without age verification, potentially normalizing alcohol consumption for underage users. 

Consumer rights issues also emerged from the study. While South Korean law allows consumers to cancel online purchases within seven days, some services, like 7-Eleven’s reservation system, initially denied this right for change-of-mind cancellations.

They only amended their policy after receiving a correction recommendation from the KCA.

Five businesses, including Daily Shot and Wine25+, were criticized for failing to properly inform consumers about refund policies in cases of product defects, leading to consumer inconvenience.

Indeed, refusal of order cancellations accounted for 40% of the 40 complaints filed with the 1372 Consumer Consultation Center over the past three years regarding smart order alcohol services. 

In response to these findings, the KCA has recommended that smart order alcohol services strengthen their in-store ID verification processes, use non-transferable exchange vouchers, and comply with e-commerce laws regarding order cancellations.

M. H. Lee (mhlee@koreabizwire.com) 

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