Seoul City Warns "Beware of Long-Term Contract Scams for CSAT and Language Online Lectures"

The Seoul Metropolitan Government announced on the 29th that it will implement the 'Consumer Damage Forecast System for Internet Education Services' in December, as the number of online course enrollments for next year's College Scholastic Ability Test (CSAT) preparation, language test scores, and certification acquisition is increasing, which may lead to a rise in contract cancellations and refund disputes.

An analysis of 3,419 consumer damage consultations related to internet education services received by the Korea Consumer Agency from 2019 to 2022 showed that a total of 367 cases occurred in December. This is a 65% increase compared to 222 cases in November. Among the 3,419 cases, 1,788 cases, accounting for 52%, were related to contract cancellations.

The city explained that many cases involved businesses inducing long-term contracts by offering high discounts, then arbitrarily calculating refund amounts based on a period set by the business when mid-term cancellations were requested, or inducing contracts with gifts and excessively deducting additional costs when mid-term cancellation requests were made.

There were also cases where legitimate refund requests were refused on the grounds that the consumer had agreed to non-refundable clauses at the time of contract, or where refund responsibilities were evaded by claiming mandatory usage periods.

To prevent damage, it is recommended to carefully check the contract period, service details, and penalties, and when signing long-term contracts, it is advisable to pay by credit card installment to prepare for cancellations.

The Seoul Metropolitan Government also urged consumers to clearly express their intention by sending a certified mail to the business when requesting contract cancellation.

Internet lectures related to the CSAT are exempt from penalty fees upon contract cancellation according to the standards for refunding tuition fees under the Act on the Establishment and Operation of Private Institutes and Private Tutoring. If the tutoring period exceeds one month, the remaining amount after deducting the portion corresponding to the actual attendance can be refunded according to regulations.

Kim Kyung-mi, the Fair Economy Officer of Seoul City, said, "Since the demand for internet education services increases immediately after the CSAT, and cases of consumer damage are increasing by exploiting this, we ask for special caution."

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