Unleashed Electric Scooters... Operators Liable for Damages in Accidents

Fair Trade Commission Orders Correction of Unfair Terms in Contracts of Five Electric Scooter Sharing Service Providers

On the 13th, a citizen wearing no protective gear was riding an electric scooter weaving through cars on the Namsan Circular Road in Seoul. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Moon Chaeseok] From now on, electric scooter operators must take responsibility and compensate for damages if an accident occurs. The scope of compensation has also been expanded to follow civil law and other regulations, rather than being arbitrarily determined by the company.

On the 17th, the Korea Fair Trade Commission announced that it reviewed the terms and conditions of five domestic and international electric scooter sharing service providers, including Ollullo (operator of Kickgoing), and corrected 12 types of unfair contract terms.

If the operator is found to have intentional or negligent fault in the event of an accident, they must be held responsible. The scope of compensation has been expanded from the company's own program to the range stipulated by civil law and related laws.

The Fair Trade Commission stated that this consideration was made in light of the deregulation and the increasing number of accidents.

With the amendment to the Road Traffic Act taking effect on the 10th of next month, unlicensed riders aged 13 and over will be allowed to ride electric scooters on bicycle roads. According to the Korea Consumer Agency, accidents increased 4.8 times from 84 cases in 2016 to 483 cases from January to October this year.

The key point is to increase the operator's liability. From now on, if intentional or negligent fault is recognized regarding damages to members, the operator must be held responsible not only for 'intentional or gross negligence' but also according to civil law.

Also, compensation for damages exceeding the limit must be borne according to civil law and related laws, not limited to 'the company's set limit or 100,000 won.'

Specifically, unfair clauses such as ▲unjust exemption of operator liability ▲unjust limitation of operator compensation responsibility ▲restriction on refund of paid (recharge) points ▲arbitrary collection, expiration, and correction of free coupons (points) ▲service use restrictions based on vague or unreasonable reasons ▲provision of advertising information without consent ▲replacing notification with announcement when changing important terms ▲unfair agreement on jurisdiction for lawsuits were corrected.

Hwang Yunhwan, head of the Fair Trade Commission's Terms and Conditions Review Division, said, "By correcting unfair contract terms in the rapidly growing personal mobility (electric scooter) sharing service sector, we expect users' rights to be protected and the market to grow and develop healthily."

He added, "The Fair Trade Commission will continue to monitor unfair contract terms in various sharing and subscription economy sectors and strive to enhance consumer rights in related fields."

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