Extension of Quality Warranty Period for Factory-Installed Car Navigation Systems from 1 to 2 Years

Fair Trade Commission Announces Administrative Notice on Proposed Amendments to Consumer Dispute Resolution Standards

[Sejong=Asia Economy Reporter Joo Sang-don] From now on, the warranty period for built-in navigation systems installed in vehicles at the time of delivery will be extended from the existing 1 year to 2 years.

On the 29th, the Fair Trade Commission announced that it has prepared a draft revision of the Consumer Dispute Resolution Standards containing this content and will publicly notify it for administrative comments until the 19th of next month.

The Consumer Dispute Resolution Standards are notices established and enforced by the Fair Trade Commission to facilitate smooth resolution of disputes that may arise between consumers and businesses. If there is no separate expression of intention regarding dispute resolution methods between the parties involved, these standards serve as the basis for agreement or recommendation to resolve disputes.

First, the Fair Trade Commission improved the warranty period and parts retention period for built-in navigation systems installed at the time of vehicle delivery, i.e., 'before-market navigation,' to be applied the same as general automobile parts, extending the warranty period from 1 year to 2 years and the parts retention period from 5 years to 8 years. Currently, all navigation systems are classified as automobile optional accessories, with a warranty period of 1 year and a parts retention period of 5 years.

In cases where consumers move to areas where service is not available during the contract period, penalties for rental service contracts are exempted, and the details regarding additional costs that may occur upon early termination are clearly stipulated. If a consumer moves to another region during the rental period, making regular maintenance impossible or raising concerns about loss of the product's original function, the contract can be terminated without penalty. If moving overseas, the penalty is reduced by 50%. Also, costs such as product removal fees incurred due to early contract termination can only be charged if these details are specified and notified in the terms and conditions or contract. Any exemption (discount) amounts provided upon subscription under long-term maintenance conditions must be refunded corresponding to the remaining period.

The penalty fees for marriage brokerage services, which are higher compared to similar or other industries, have been improved to be applied differentially according to the progress of the service. Currently, a penalty of 20% of the membership fee is imposed for contract termination before the meeting starts, which is excessive and unclear regarding the meaning of the meeting start, causing frequent disputes. Accordingly, the penalty rates are applied differently considering the progress of the service as follows: 10% of the membership fee for termination after contract formation but before information (profile) provision, 15% for termination after information provision but before confirming the meeting date, and 20% for termination after confirming the meeting date.

A Fair Trade Commission official stated, "By rationally improving the Consumer Dispute Resolution Standards in areas closely related to the daily lives of the public, such as navigation systems, rental services, and marriage brokerage, we expect to prevent unnecessary disputes in advance and enable prompt and appropriate relief." He added, "During the administrative notification period, we will fully collect opinions from stakeholders and related ministries and finalize the revision through committee resolution, etc."

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