2024-07-26 05:37:34
Psychological pressure caused by Fair Trade Commission’s quick on-site investigation… Inducing relief for damages
Damage to tenants is civil… Excluding large-scale distribution and fair trade laws
Whether there is joint responsibility, future review… Formation of response team to mediate group dispute
As the issue of non-payment of settlement and refunds by Timon and WeMakePrice is spreading, the government, led by the Fair Trade Commission, has begun to investigate the situation. The non-payment damages of the merchants are a civil matter, so they will be reviewed later, and the plan is to first do everything in their power to rescue the victims who are unable to receive refunds.
According to industry sources on the 26th, the Fair Trade Commission’s Market Surveillance Bureau dispatched investigators to the headquarters of WeMakePrice and TMON the previous afternoon and began an emergency on-site investigation.
On the 22nd, the Fair Trade Commission conducted an on-site investigation to investigate the alleged violation of the Electronic Commerce Act by Qoo10, a Singaporean e-commerce company that includes Timon and WeMakePrice. However, it is very unusual for the Fair Trade Commission to disclose this to the press and other organizations before conducting the on-site investigation.
As consumer damages spread due to the recent Timon and WeMakePrice insolvency, it is interpreted that this was done in consideration of the urgency. If the fact that an investigation has been launched to rescue victims is made public, expectations are also reflected that Timon and WeMakePrice will take priority in compensating consumers for damages such as refunds.
Kim Geun-seong, director of the Fair Trade Commission’s Market Monitoring Bureau, who is in charge of this case, said, “If they are exposed to the media and feel psychological pressure, there is ample room to actively move to remedy consumer damage.”
The number of damage consultation reports related to Timon and WeMakePrice received by the Fair Trade Commission has increased significantly recently. 254 cases were received on the 23rd, and about 1,300 cases were received on the 24th. It is reported that the number has increased rapidly after travel agencies notified customers of refunds. It has been found that a significant number of the reported cases are related to delayed settlement issues.
Although both tenants and consumers are suffering damages due to this incident, the Fair Trade Commission plans to focus on the non-payment of refunds to consumers rather than the non-payment issue by tenants.
Han Ki-jung, Chairman of the Fair Trade Commission, explained at a press conference held at the Sejong Government Complex the previous day, “It is very unfortunate that platform operators are unable to settle accounts with their tenants, but since this is a civil debt default issue, it is difficult for the Fair Trade Commission to enforce the Fair Trade Act.”
He continued, “Because it is an open market, it is not subject to the Large-Scale Distribution Business Act. The Electronic Commerce Act (currently under review) is a law to protect consumer rights, so it is difficult to apply it to protect store owners.” He added, “However, the financial authorities are reviewing the issue of delayed payment settlement along with countermeasures.”
The Fair Trade Commission plans to make every effort to provide relief to consumers. It is concerned that Timon and WeMakePrice, which are already suffering from a credit crunch, may become insolvent, so it has started to first determine the specific situation, including the extent of the damage.
Director Kim Geun-seong said, “It is a priority to grasp the extent of the payment requests on the spot,” and “It is difficult to make definitive judgments about institutional measures to prevent additional damage to consumers in the current situation. After assessing the situation, we will discuss with the relevant authorities whether there will be a system (to prevent damage).”
It will likely take time to determine legal responsibility for this incident. Director Kim Geun-seong said, “It is a priority to determine the actual situation, such as how settlement is done and what effect this has on consumer protection, through on-site investigations,” and “It seems that the issue of holding those responsible for illegal acts, such as whether they should be jointly liable, will be determined after a comprehensive investigation. The National Assembly is also watching with interest.”
The industry and others are concerned that victims will continue to appear in the future. The Fair Trade Commission announced that it is preparing a group dispute mediation to support consumer damage relief and dispute mediation due to delayed or rejected refunds. After setting up a dedicated response team at the Korea Consumer Agency, it will begin receiving damage reports. The requirement for applying for group dispute mediation is that there are at least 50 consumers who have suffered damages.
A government official said, “We will immediately begin preparing for collective dispute mediation, and we will also actively support civil lawsuits depending on the future situation.”
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2024-07-26 05:37:34