"3 out of 5 Terms and Conditions Disputes Involve 'Online Advertising'"

Most Cases of Damage Occur During Contract Termination Process
Excessive Penalty Charges and Refusal to Terminate Contracts

[Sejong=Asia Economy Reporter Joo Sang-don] Mr. A, who runs a cafe, received a phone call on March 18 this year from C, a sales employee of advertising agency B, recommending that he sign an online advertising agency contract including website creation and registration on blogs and Facebook. Mr. A signed the online advertising agency contract but on the same day requested contract termination and a full refund of the deposit from B, citing a simple change of mind. However, B refused Mr. A's request for contract termination based on terms and conditions that stipulate a mandatory usage period of at least one year.

There have been damages where businesses refuse contract termination or charge excessive penalties when customers impulsively sign online advertising contracts and then terminate them due to a simple change of mind. In particular, 3 out of 5 disputes in the terms and conditions field are related to 'online advertising,' indicating the need for caution.

According to the Korea Fair Trade Mediation Agency, among 1,077 disputes reported by small business customers complaining of unfair terms and conditions by businesses from 2019 to the present, 609 cases (56.5%) were related to online advertising agency disputes, the highest number.

All reported cases of damage related to online advertising agencies received by the Mediation Agency surfaced during the contract termination process. The detailed reasons for applicants' requests were 'excessive penalty charges' at 65.0% (396 cases) and 'refusal to terminate contracts' at 35.0% (213 cases).

The reasons for termination were a simple change of mind in 51.6% (314 cases), and the termination timing was within 3 days after contract signing in 35.5% (216 cases). Many disputes arise when customers impulsively sign online advertising contracts and immediately request contract termination and refund of the deposit.

An official from the Mediation Agency said, "Small business owners who lack information about online advertising are likely to sign contracts without having enough time to make careful and rational decisions when suddenly faced with aggressive marketing from online advertising agencies. It is important to thoroughly check whether the contract includes terms that stipulate mandatory usage periods or restrict contract termination, and whether penalty charges are excessive."

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