Increase in Consumer Disputes Due to Strengthened Social Distancing... Seoul City Extends Operation of Counseling Mediation Center Until End of September

[Asia Economy Reporter Lim Cheol-young] On the 21st, Seoul Metropolitan Government and the Korea Consumer Organization Council announced that they have decided to extend the operation of the Consumer Protection Counseling and Mediation Center until the end of September, regardless of the social distancing level, to prevent consumer damage and reduce disputes.

Seoul decided to extend the operation considering that disputes related to the lodging industry will continue to increase along with the wedding industry, banquet facility industry, and the start of the peak vacation season at the end of July. Seoul plans to lead a smooth agreement to the end for damages that have already occurred, even if the social distancing level is eased.

The center operates by having professional counselors belonging to the Consumer Organization Council receive dispute reports by phone, then attempt direct mediation and dispute resolution between parties according to the dispute resolution standards under the Framework Act on Consumers. If the business operator does not comply with these standards, the consumer organization connects the consumer to the damage relief procedure (voluntary dispute mediation) supported by the consumer organization to minimize consumer damage.

Furthermore, Seoul suggested that since it may take a lot of time to receive damage relief and process after a dispute occurs, it is also a good method to receive counseling on precautions before signing contracts in related industries. They also urged consumers to confirm whether the business complies with the consumer dispute resolution standards rather than just the facility appearance or immediately offered services, and to clearly understand how contracts can be conducted if the social distancing level is raised.

Meanwhile, a total of 387 consumer disputes were reported to the center over six months from January, of which 82% (317 cases) were related to wedding hall contracts. The counseling mainly involved issues about penalty fee calculation and the possibility of changes when canceling contracts.

Seo Byung-chul, Director of Fair Economy at Seoul Metropolitan Government, said, “Due to the prolonged social distancing and repeated escalation of levels, consumer disputes related to restricted and prohibited businesses are also fluctuating. Seoul and the Korea Consumer Organization Council will work closely to derive the best solutions that can reduce not only consumer damage but also business owner losses.”

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