25% of Door-to-Door Sales Victims Are Aged 60 and Over... Consumer Agency Issues Damage Warning

On the 8th, the Richway office in Gwanak-gu, Seoul, related to a ping pong hall and a multi-level marketing elderly health product sales company, is being restricted from entry due to ongoing secondary infections. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Seungjin Lee] Recently, amid a surge in confirmed cases of COVID-19 through the multi-level marketing health supplement retailer Richway, authorities have issued a consumer warning regarding the sales tactics of direct sales company showrooms.

According to the Consumer Agency and the Fair Trade Commission on the 11th, from 2017 to last year, there were a total of 4,096 consumer consultations related to showroom sales tactics of direct sales companies reported to the 1372 Consumer Counseling Center, of which 330 cases applied for damage relief.

Analyzing 327 cases where the age of the applicant was confirmed among the damage relief applications, people in their 30s accounted for the largest portion at 27.8%, followed by those aged 60 and above at 25.1%.

The most common type of damage was related to 'contract cancellation,' accounting for 44.8%, where consumers impulsively signed contracts at showrooms and requested refunds, but the business operators refused. This was followed by 'contract non-fulfillment' at 15.5% and unfair practices at 12.4%.

In particular, many showrooms rent business spaces short-term to sell products and then disappear, making their addresses unclear or not recorded in contracts, which causes difficulties when canceling contracts.

The product category with the most frequent damages was funeral services (60 cases), followed by investment services (44 cases) and mobile communication services (43 cases), showing that the range of damaged products has diversified beyond health supplements.

The Consumer Agency and the Fair Trade Commission stated, "Showroom sales tactics not only lure customers in a short period and then disappear causing economic damage, but also make it impossible to clearly trace COVID-19 infection routes, resulting in the generation of patients," urging consumers to refrain from purchasing products through showroom visits whenever possible.

They also advised that if it is unavoidable to purchase products through showrooms, consumers should ensure that verbal promises such as '100% refund if there is no efficacy or effect' are recorded in the contract, secure evidence to prove the agreement, and notify the business operator by certified mail within 14 days after the contract if they wish to cancel.

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