"Getting New Products for Free"... 'Word-Robbing' Group Exploiting Refund Policies
'Wordrobbing' Tribe Who 'Use Like Their Own and Refund'
Sharing Tricks and Know-How... Companies' Headache
[Asia Economy Reporters Seungyoon Song, Intern Junhyung Park] The so-called 'wardrobing' consumers who purchase products, use them briefly, and then demand refunds are on the rise. Especially with the surge in online commerce, which requires less effort to purchase products, wardrobing has also increased accordingly. Companies are increasingly concerned about how to deal with this issue.
Derived from the word 'wardrobe,' wardrobing refers to the act of easily purchasing and repeatedly refunding products as if taking clothes out of one's closet. Coupang, the largest e-commerce company in Korea, operates a membership service that allows 'free returns within 30 days.' As a result, many customers have repeatedly used products for a month and then requested refunds. Coupang operates its own monitoring team and takes firm measures such as suspending accounts of consumers who maliciously repeat wardrobing and pursuing legal action. However, it is practically difficult to catch all kinds of 'tricks,' such as using multiple accounts to place orders.
Apple Korea, which has a refund policy for returns within two weeks for customers who purchase products from its official website, faces a similar situation. Online communities frequently share wardrobing tips such as 'how to use an iPhone for free' and 'how to rent an iPhone.' The home shopping industry, which adopts a policy of 'full refund if not satisfied with the product,' has long faced such problems. Some companies have implemented regulations to expel malicious customers through revisions to their terms of use, but it is said to be difficult to completely weed out intentional and repetitive wardrobing consumers.
Not only large corporations but also ordinary self-employed business owners suffer from similar problems. It is common for people to purchase expensive items such as clothes or bags, take photos, post them on social networking services (SNS), and then request refunds. Some also use products briefly for business purposes and then return them.
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On the other hand, some companies are willing to embrace even these 'black consumers' as part of their customer base. Emart and Homeplus are representative examples. While some customers abuse refund policies, the effect of attracting new customers and reducing disputes caused by black consumers is greater. Professor Siwol Kim of Konkuk University's Department of Consumer Studies advised, "It is also a good method for companies to disclose serious black consumer cases so that consumers can become more aware."
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