"Consumer Damage from Wedding Preparation Agency Services Increased by 40% Compared to Last Year"

Excessive Penalty Claims Cause Many Damages in Contract Cancellation Cases

As social distancing measures are lifted and quarantine restrictions are eased, consumer complaints related to wedding preparation agency services have increased in proportion to the rise in weddings.

The Korea Consumer Agency announced on the 8th that the number of damage relief applications related to wedding preparation agency services received up to April this year totaled 74 cases, a 39.6% increase compared to the same period last year. The agency added that related damage relief applications have been on the rise annually, with 111 cases in 2021 and 176 cases in 2022.

An analysis of 361 damage relief applications received from 2021 to April this year showed that the majority of applications, 338 cases (93.6%), were related to 'contract issues.' Specifically, contract cancellation/termination and penalties accounted for the largest portion with 224 cases (62.1%), followed by refusal of withdrawal from subscription (68 cases, 18.8%), and contract non-fulfillment (46 cases, 12.7%).

In particular, among cases filed for contract cancellation/termination and penalties, 164 cases involved contract cancellations before service commencement, and in 120 of these cases, the penalty exceeded the consumer dispute resolution standard (10% of the total agency fee). This indicates that many businesses are demanding excessive penalties.

Wedding preparation agency service contracts most frequently took the form of 'door-to-door sales' conducted outside the business premises, such as at wedding fairs, accounting for 125 cases (37.4%). The Korea Consumer Agency explained that since most contracts are impulsively made under insufficient information and aggressive promotion by businesses, caution is necessary.

The agency also urged consumers to prevent damage when using wedding preparation agency services by ▲ carefully checking product details before contracting, ▲ recording key conditions verbally communicated at the time of contract in the contract document, and ▲ using credit card installment payments whenever possible.

The Korea Consumer Agency stated, "Generally, when contracts are made by visiting wedding fair venues, withdrawal from subscription is possible within 14 days under the 'Door-to-Door Sales Act.' However, if the venue is the business’s permanent place of business, this law does not apply, so it is necessary to be cautious when concluding contracts."

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