Submittal of notice of incident
Consumers’ submittal of notice of an incident
- In the event of loss, damage, or late delivery of a package, the customer shall inform the business without delay.
- Concerning partial loss or damage of a package, the door-to-door delivery business’s responsibility for compensation expires if the customer (sender) fails to inform the business of such fact within 14 days of the date of the customer's (recipient's) receiving the package. Therefore, such fact must be notified to the door-to-door delivery business within 14 days of receiving the package [Article 25(1) of the 「Standardized Agreement of the Door-to-Door Delivery」 (Korea Fair Trade Commission Standard Terms and Conditions No. 10026 dated 2020. 6. 5.)].
Steps to be taken by the business in the event of an incident
- The business shall inform, without delay, the customer (sender) of the total loss of a package occurring during the process of delivery (Article 18(1) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Upon discovering partial loss or considerable damage or upon delivery of a package considerably later than the promised delivery date, the business shall inform the customer (sender) without delay and request the latter to give, within the business-designated period, instructions on how and when to dispose of the package, etc. (Article 18(2) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Where the business cannot afford to wait for the customer’s (sender's) instruction, or the customer fails to give an instruction within the period set by the business, the business may take the necessary step like stoppage of the delivery or return of the package for the benefit of the customer. In this case, the business shall immediately inform the customer (sender) of the step to be taken (Article 18(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Concerning loss, damage, or late delivery of a package, the business shall issue a certificate of incident within 1 year of the day of the incident upon the customer’s (sender's) request (Article 19 of the 「Standardized Agreement of the Door-to-Door Delivery」).
Compensation for incident in door-to-door delivery
Commencement of the business’s responsibility
- The business’s responsibility for loss, damage, or late delivery of a package shall start the moment the customer (sender) entrusts a package to the business (Article 20 of the 「Standardized Agreement of the Door-to-Door Delivery」).
Compensation for loss or damages
- A door-to-door delivery business shall compensate for the loss, damage or delay of a package unless it can prove that it, a delivery contractor, or any other person involved in the delivery has/have not been negligent in the entire process of the delivery service (Article 22(1) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- A door-to-door delivery business shall fully compensate for the loss of a package if the loss, damage or delay has been caused by willful misconduct or egregious error of the business, a delivery contractor, or any other person involved in the delivery (Article 22(4) of the 「Standardized Agreement of the Door-to-Door Delivery」).
Where the value of the package is stated in the delivery note
- Concerning total or partial loss of a package, the business shall compensate for the loss calculated based on the value of the package stated in the delivery note or the damages to package as proved by the customer (sender) (receipt, etc.) and return the prepaid delivery fee (Subparagraph 1 of Article 22(2) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- With regard to damage of a package, the business shall 1) compensate for actual repair cost (A/S cost) if it can be repaired, and 2) if it cannot be repaired, compensate for the loss calculated based on the value of the package stated in the delivery note or the damages to package as proved by the customer (sender) (receipt, etc.) and return the prepaid delivery fee (Subparagraph 2 of Article 22(2) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- With regard to late delivery of a package without loss or damage, the business shall pay the following penalty (Subparagraph 3 of Article 22(2) of the 「Standardized Agreement of the Door-to-Door Delivery」).
① Number of days past the expected delivery date x Transportation fee stated in the delivery note x 50%, but a sum not exceeding 200% of the transportation fee, for an ordinary package
② Sum equal to 200% of the transportation fee stated in the delivery note, for a package with a promised delivery date
- With regard to late delivery of a package with partial loss, the foregoing clauses on loss or damage of a cargo shall apply (Subparagraph 4 of Article 22(2) of the 「Standardized Agreement of the Door-to-Door Delivery」).
Where the value of the package is not stated in the delivery note
- The business shall pay up to 500,000 Won as compensation for loss and damages. However, for an instance wherein surcharge is imposed depending on the value of the package, the business shall pay up to the highest value of the package set for each section of the delivery fee (Article 22(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Where total loss of a package is involved, the business shall compensate for the loss calculated based on the value of the package at the destination on the expected delivery date or the damages to package as proved by the customer (sender) (receipt, etc.) (Subparagraph 1 of Article 22(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Where partial loss of a package is involved, the business shall compensate for the loss calculated based on the value of the package at the destination on the delivery date or the damages to package as proved by the customer (sender) (receipt, etc.) (Subparagraph 2 of Article 22(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Where damage of a package is involved, the business shall ① actual repair cost (A/S cost) if it can be repaired, and ② if it cannot be repaired, compensate for the loss calculated based on the value of the package at the destination on the delivery date or the damages to package as proved by the customer (sender) (receipt, etc.) (Subparagraph 3 of Article 22(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- With regard to late delivery of a package without loss or damage, the business shall ① actual repair cost (A/S cost) if it can be repaired, and ② if it cannot be repaired, compensate for the loss calculated based on the value of the package at the destination on the delivery date or the damages to package as proved by the customer (sender) (receipt, etc.) (Subparagraph 4 of Article 22(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- With regard to late delivery of a package with partial loss or damage, the business shall ① compensate for the loss calculated based on the value of the package at the destination on the expected delivery date or the damages to package as proved by the customer (sender) (receipt, etc.), in the case of partial loss, ② repair it if it can be repaired, and ③ if it cannot be repaired, compensate for the loss calculated based on the value of the package at the destination on the delivery date or the damages to package as proved by the customer (sender) (receipt, etc.) (Subparagraph 5 of Article 22(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
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Compensation for late delivery in door-to-door service
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Q. I paid KRW 15,000 as transportation fee in door-to-door delivery service to send a special holiday gift to someone close to me. The package was not delivered on time, and its value as a special holiday gift was impaired. In this case, can I get compensation? A. Yes, you can. Article 20 (compensation for damage) of the 「Standardized Agreement of the Door-to-Door Delivery」 stipulates that compensation shall be made by the business as follows: -Where late delivery of a package is involved without loss or damage 1. For ordinary package: Number of days past the expected delivery date x Transportation fee stated in the delivery note x 50%, but a sum not exceeding 200% of the transportation fee 2. For a package with a promised delivery date: Sum equal to 200% of the transportation fee stated in the delivery note - Where the value of the package is not stated in the delivery note The business shall pay up to KRW 500,000 as compensation for loss and damages. However, for an instance wherein surcharge is imposed depending on the value of the package, the business shall pay up to the highest value of the package set for each section of the transportation fee. <Korea Consumer Agency>
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Instances wherein the business is not responsible
- A business (door-to-door delivery business) shall not be responsible for compensation for loss or damages or later delivery of a package caused by a force majeure event including acts of God, war and rebellion (Article 24 of the 「Standardized Agreement of the Door-to-Door Delivery」).
Statute of limitations
- A business’s responsibility for compensation for partial loss or damage of a package shall expire if the customer (sender) fails to inform the business of the relevant fact within 14 days of customer's (recipient's) receiving the package (Article 25(1) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- A business’s responsibility for compensation for partial loss and damages, or late delivery of a package expires
1 year from customer's (recipient's) receiving the package. However, in the event of total loss of the package, the period stated in the foregoing sentence shall start on the expected delivery date (Article 25(2) of the 「Standardized Agreement of the Door-to-Door Delivery」).
- Where the business, a delivery contractor, or any other person involved in the delivery has delivered a package but hides the fact about the partial loss or damage of the package, the aforesaid statute of limitation shall not apply. In such case, the statute of limitation shall be for 5 years after the customer's (recipient's) receipt of the package (Article 25(3) of the 「Standardized Agreement of the Door-to-Door Delivery」).
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Compensation for loss or damage occurring during transportation from a foreign country after purchasing agent service
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Q.I purchased a TV priced at KRW 2 million through a purchasing agent service provided by a party in a foreign country. The TV delivered to me was damaged. What shall I do to get compensation? A. You should ask the purchasing agent for compensation. If the damage was found before the good’s departure from the foreign country, it could have been returned and replaced with a good one. <Korea Consumer Agency>
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