Resolution based on the consumer dispute resolution criteria
Consumer dispute resolution criteria
- Consumer Dispute Resolution Criteria are the recommended or agreed-upon criteria for amicably settling disputes between the consumer and the business operator. These are the criteria used when there is no separate instruction on how the dispute between the parties should be settled (Article 1 of the Consumer Dispute Resolution Criteria).
- Today, the 「
Consumer Dispute Resolution Criteria」 created in accordance with the 「Framework Act on Consumers」 are intended to settle disputes between consumers and business operators. These criteria consist of "general consumer dispute resolution criteria," which define the general principles of dispute resolution, and "item-specific consumer dispute resolution criteria," which define the compensation criteria for individual good types (Article 16(2) of the 「Framework Act on Consumers」 and Article 8 of the 「Enforcement Decree of the Framework Act on Consumers」).
Application of the consumer dispute resolution criteria
- When the dispute resolution criteria based on a different statute are more advantageous
· If the dispute resolution criteria based on a different statute are more advantageous for the consumer, then such criteria are applied first (Article 9(1) of the 「Enforcement Decree of the Framework Act on Consumers」).
- When there are no dispute resolution criteria for a specific good
· If there are no dispute resolution criteria for a particular good in the item-specific consumer dispute resolution criteria, then the criteria for a similar good can be used instead (Article 9(2) of the Enforcement Decree of the 「Framework Act on Consumers」).
- When there are overlapping dispute resolution criteria for the same damage.
· If, in the item-specific consumer dispute resolution criteria, there are 2 or more criteria for the same damage, then the criteria selected by the consumer are applied (Article 9(3) of the 「Enforcement Decree of the Framework Act on Consumers」).
General consumer dispute resolution criteria
General consumer dispute resolution criteria
- The general consumer dispute resolution criteria are based on general principles of dispute resolution and are the higher criteria than the item-specific consumer dispute resolution criteria. The general consumer dispute resolution criteria specify what methods can be used in the repair/replacement/reimbursement/compensation of goods or services (hereinafter collectively referred to as goods) as well as the period of quality assurance, including how long components should be held in stock (Article 8(1) and (2) of the Enforcement Decree of the Framework Act on Consumers).
General consumer dispute resolution
- For damage suffered by a consumer because of default or flaws in the goods [which includes giveaways provided along with the goods], the business operator must provide repair/replacement/reimbursement/compensation or cancel/terminate/execute the contract (Attached Table 1-1 of the 「Enforcement Decree of the Framework Act on Consumers」).
· Payment of repair/replacement/reimbursement expenses
√ The costs of repair/replacement/reimbursement during the quality assurance period are borne by the business operator (Main Text of subparagraph 1(a) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
√ Except when the good has been damaged/altered because of the consumer’s mishandling, damage caused by natural disasters, or repairs/installation carried out in a place other than the designated repair & installation centers, the business operator is responsible for the costs of repair/replacement/reimbursement (Proviso to subparagraph 1(a) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
· Repair criteria
√ If a month has passed since the consumer requested repair, and the business operator has not yet delivered the repaired good to the consumer, the business operator has to ① replace the consumer’s good with another good of the same type, or, if this is impossible, refund the consumer - ② if the quality assurance period is over - in an amount equal to the depreciated value of the good plus 10% of this value (subparagraph 1(b) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
√ If a consumer paid to repair a good, but the same trouble occurs during normal use less than 2 months after the day the good was repaired, the business operator repairs the good free of charge. If it is impossible to repair the good, the business operator must refund the consumer for the full cost of the previous repair (subparagraph 1(c) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
· Replacement criteria
√ When a good (includes goods sold at a discount) needs to be replaced, it must be replaced by a good of the same type. If this is impossible, it must be replaced by a similar good of the same type (Main Text of subparagraph 1(d) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
√ However, when it is impossible to replace a good with another good of the same type, and the consumer does not want a similar replacement good of the same type, the business operator must refund the consumer (Proviso to subparagraph 1(d) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
· Reimbursement criteria
√ The refund amount must be based on the price of the good shown on the receipt issued to the consumer (Main Text of subparagraph 1(f) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
√ However, if there is contention over the price indicated in the receipt, the person claiming a different amount for the reimbursement must prove that this amount was the actual amount transacted (Proviso to subparagraph 1(f) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
√ Meanwhile, if there is no receipt with which to validate the transaction price, then the typical price of transactions in the region will be applied to the refund amount (Proviso to subparagraph 1(f) of the Attached Table 1 of the Enforcement Decree of the Framework Act on Consumers).
Item specific consumer dispute resolution criteria
Item specific consumer dispute resolution criteria
- “Item specific consumer dispute resolution criteria” are the compensation criteria defined for each item. They are developed on the basis of the general consumer dispute resolution criteria and consist of “items” and ‘damage compensation criteria for each item” (Article 8(3) of the Enforcement Decree of the Framework Act on Consumers).
- When two or more criteria are defined for the same (type of) damage in the item specific consumer dispute resolution criteria, the consumer may choose the criteria. If there are no consumer dispute resolution criteria for the disputed item, then the criteria for a similar item selected using the same standard may be applied instead (Article 16(2) of the 「Framework Act on Consumers」 and Article 9(2) and (3) of the 「Enforcement Decree of the Framework Act on Consumers 」 ).
Description of the item specific consumer dispute resolution criteria
- Precautions when purchasing goods for each sale/transaction formatpecific resolution criteria are described in the table below (Attached Tables 1 and 2 of the 「
Consumer Dispute Resolution Criteria」 ).
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Category
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Business Type/Sub-Category
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Food
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Food services (2 business categories) Groceries (19 business categories) Agricultural, fishery and livestock products (7 business categories)
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Public Health/Medicine
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Medical services (3 business categories) Medical & chemical products (10 product categories) Postpartum care centers (1 business category) Beauty parlors (4 business categories)
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Residence/Facilities
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Window/door construction (1 business category) House construction (1 business category) Parking lots (2 business categories) Lodging/accommodation (1 business category) Real estate (1 business category) Security services (1 business category)
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Daily Supplies
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Manufactured goods (1 business category) Precious metals, jewelry (1 business category) Sale of used electronic goods (1 business category) Manufactured goods (30 business categories)
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Apparel
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Manufactured goods (1 business category) Sale of used electronic goods (1 business category) Laundry (1 business category) Accessories (1 business category) Precious metals, jewelry (1 business category) Bags (1 business category) Leather products (1 business category) Shoes (1 business category) Umbrellas (1 business category) Clothes (1 business category) Furniture (1 business category) Laundry business (1 business category)
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Automobiles /Machinery
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Used car sales (1 business category) Automobile maintenance (1 business category) Automobile leasing (1 business category) Automobile towing (1 business category) Training for automobile driving (1 business category)
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Data Communication
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Smart phones (1 business category) Communication bundled products (1 business category) High-speed Internet communication network services (1 business category) Internet contents (1 business category) Internet shopping malls (1 business category) Mobile communication services (1 business category) Satellite broadcasting and fixed line broadcasting services (2 business categories)
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Finance/Insurance
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Issuance of electronic payment means (1 business category) Social commerce (1 business category) Electronic cash (1 business category) Credit cards (1 business category) Gift certificates (1 business category)
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Education/Culture
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Driving education centers (1 business category) International matchmaking agencies (1 business category) Wedding planners (1 business category) Education institutes (hagwon) & adult educational facility management (2 business categories) Overseas study agencies (1 business category) Wedding business (1 business category) Overseas language study (2 business categories) Pet animal sales (1 business category) Photo processing & shooting (1 business category) Cultural products / others (4 business categories) Concert planning (2 business categories) Gosiwon (1 business category)
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Leisure/Sports
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Golf courses (1 business category) Vacation condominiums (1 business category) Gyms and leisure services (3 business categories)
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Tourism/Transportation
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Driver-for-rent/chauffeur services (1 business category) Home delivery and quick services (1 business category) Moving freight services (1 business category) Transportation services (9 business categories) Travel agents (2 business categories)
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Others
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Cleaning service providers (1 business category) Immigration service providers (1 business category) Funeral service providers (1 business category) Product rental service providers (1 business category) Public service providers (3 business categories) Marriage information providers (1 business category) Online game service providers (1 business category)
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All Items (Click)
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Item specific consumer dispute resolution criteria
- The consumer should check the Attached Table 1 of the Consumer Dispute Resolution Criteria to determine which target item matches the disputed good, and then look into the “item specific resolution criteria” under the Attached Table 2 of the Consumer Dispute Resolution Criteria to determine the level of resolution for the type of damage to the good.
- For example, suppose that a newly purchased TV that has been operating normally begins to suffer problems with the screen image on the fifth day after purchase. In this case, the TV, as a manufactured good, belongs to the home appliance category. The type of damage that corresponds to the problem in this case is the first type of damage described in the table below. Therefore, the consumer who bought this TV is entitled to receive a replacement or a refund of the purchase price (Home Appliances of subparagraph 9(a) of the Attached Table 2 of the Consumer Dispute Resolution Criteria).
< Home appliance dispute resolution criteria >
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Type of Damage
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Compensation Level
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When the product requires important repairs within 10 days of purchase due to the occurrence of a performance/functional defect during normal use of the product.
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Replacement of the product or refund of the purchase price.
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When the product requires important repairs within a month of purchase due to the occurrence of a performance/functional defect during normal use of the product.
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Replacement of the product or provision of repair service free of charge.
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When a functional defect occurs within the quality assurance period while the product is being used normally.
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When a defect occurs.
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Provision of repair service free of charge.
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When repair is impossible.
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Replacement of the product or refund of the purchase price.
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When replacement is impossible.
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Refund of the purchase price.
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When the replaced product needs important repairs within a month.
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Refund of the purchase price.
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When the business operator loses the product for which the consumer has requested repairs.
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Before expiration of the quality assurance period.
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Replacement of the product or refund of the purchase price.
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After expiration of the quality assurance period.
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Refund of an amount equal to the straight-line depreciated value of the good plus 10% of this value. (Upper limit : purchase price)
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Damage resulting from a lackof components for repair during the period when the stock inventory must be kept.
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Before expiration of the quality assurance period.
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When damage occurs as a result of a performance/function defect under normal operating conditions.
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Replacement of product or refund of the purchase price.
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When the consumer damages the product intentionally or by mistake.
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An amount equal to the paid repair cost and then provision of a replacement product.
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After expiration of the quality assurance period.
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Refund of an amount equal to the residual value after straight-line depreciation plus 10% of the purchase price.
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Damage that occurs during the purchase while the product is being transported.
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Replacement of the product. (However, when the product is to be transported by a professional freight company, the business operator can claim the right to indemnity)
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Damage that occurs while the business operator is installing the product.
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Replacement of the product.
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