Fair Trade Commission Corrects Terms of StubHub, Ticket Broker of T-Cat

Correction of Terms on Delivery-Related Business Liability and No Contract Cancellation
Fair Trade Commission: "StubHub Korea to Apply Revised Terms from April"

A consumer in Miami, USA, using the eBay application. (Image source=AP Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The Korea Fair Trade Commission (KFTC) has taken steps to correct unfair terms and conditions of StubHub, following global information technology (IT) companies such as Google, Facebook, Netflix, Amazon, and TwitchTV, a subsidiary of Amazon. StubHub was formerly a subsidiary of eBay and was sold in January to Swiss ticket seller Viagogo Entertainment. It provides services in Korea through Ticket Experience Co., Ltd.

On the 12th, the KFTC announced that it reviewed the terms and conditions of StubHub Korea, which mediates ticket transfers for performances and sports events worldwide, and corrected four unfair contractual clauses. StubHub Korea has been operating under the revised terms since last month.

First, the exemption clause related to delivery was changed. Previously, it was stipulated that the business operator bore no responsibility in disputes arising among sellers, buyers, delivery companies, and financial institutions regarding the delivery of already reserved secondhand tickets.

The KFTC explained that under the Electronic Commerce Act, online sales intermediaries must promptly take necessary measures to resolve complaints or disputes arising from the use of cyber malls.

Since the existing clause exempted all responsibility in disputes between sellers and buyers related to delivery, it was deemed invalid.

After correction, the clause stating that the business operator bears no responsibility was deleted. Users can now dispute the operator’s liability in delivery-related disputes.

The clause allowing unilateral order cancellation without the buyer’s consent was also corrected.

Before correction, if a sales contract for secondhand tickets was concluded but the buyer did not deposit the payment, the business operator could cancel the order without the buyer’s consent.

The KFTC judged this clause invalid as it granted a right of cancellation to a third party (the online sales intermediary) not stipulated by law and gave the operator the authority to unilaterally change the content of the provision without reasonable grounds.

Therefore, the clause allowing the operator to unilaterally cancel the buyer’s order if payment was not deposited was deleted.

Additionally, the clause was changed to allow buyers to cancel after the secondhand ticket sales contract was concluded.

This was because, before correction, buyers were not guaranteed the right of cancellation or rescission as provided under the Electronic Commerce Act.

Furthermore, the clause on jurisdiction unfavorable to users was deleted.

Before correction, the jurisdiction for lawsuits regarding e-commerce disputes between the business operator and users was set to the Seoul Central District Court.

After correction, the agreed jurisdiction clause was deleted, allowing users to file lawsuits at courts with jurisdiction according to the Civil Procedure Act and other laws.

Lee Taehwi, head of the KFTC’s Terms and Conditions Review Division, said, "By correcting unfair terms of the global ticket brokerage platform, we have been able to protect the rights and interests of domestic consumers." He added, "As non-face-to-face transactions are expected to become more active after the COVID-19 pandemic, we plan to continuously review and correct platform operators’ terms and conditions."

This content was produced with the assistance of AI translation services.