"Discounts for Breaking Contracts with Competing Sangjosa... Coercion Also an Unfair Practice"

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[Asia Economy Reporter Moon Chaeseok] Providing excessive benefits to consumers who have signed contracts with competing funeral service companies to induce contract termination has been specified as an unfair customer inducement practice.

On the 12th, the Fair Trade Commission announced the implementation of a revised version of the "Prepaid Installment Transaction (Funeral Service) Consumer Protection Guidelines," which concretizes unfair customer inducement practices by funeral service companies.

The key point is that the revised guidelines include clear examples of unfair customer inducement practices that were not specified in the previous guidelines.

Additionally, if a funeral service company intends to terminate a contract with a consumer who has not paid for several months, it must notify the consumer in advance with a period of at least 14 days.

Furthermore, in the case of a merger with another company, since from the consumer's perspective it is similar to the name of the funeral service company they pay changing, the company must notify customers of the merger.

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