Seoul City: "1 in 5 Study Cafes Non-Refundable... Consumers Beware"

Seoul City announced on the 11th that a survey conducted at the end of last year on the operation status of about 300 study cafes revealed that one in five places had a 'no refund under any circumstances' policy.

According to the Seoul 1372 Consumer Counseling Center, consultations related to study cafes more than doubled from 119 cases in 2019 to 294 cases in 2022. Among the 294 study cafe consultations received in 2022, complaints related to refunds and cancellations accounted for the majority with 229 cases.

To accurately grasp the situation, the city conducted an on-site survey of 341 study cafes in the city in collaboration with the Korea Women Consumers Association. The results showed that 79 places, accounting for 23.2%, included 'no refund under any circumstances' in their withdrawal of subscription regulations. Refund prohibition clauses are difficult to be recognized as valid because they fall under Article 6, Paragraph 3 of the Act on the Regulation of Terms and Conditions, which defines them as 'unfairly disadvantageous clauses to customers.'

The city and the association plan to request an investigation from the Fair Trade Commission into the relevant businesses and urge the establishment of dispute resolution standards related to subscription withdrawal and refunds to prevent consumer damage caused by the absence of consumer dispute resolution standards for study cafes.

Additionally, among the study cafes surveyed, 288 operate unmanned, and among them, 17 places have no contact information for managers or others, making it difficult to inquire or request assistance.

In cases where the category is 'reading room,' under the Private Education Act, even if the contract is within one month, refunds can be received for the remaining time or period. If registered as a food and beverage establishment or service business (space rental business), the Act on Door-to-Door Sales, etc., rather than the Private Education Act, applies. For usage rights over one month, contracts can be canceled by paying a certain penalty, and for usage rights under one month, refunds may be difficult upon cancellation.

Kim Kyung-mi, Seoul City's Fair Economy Officer, said, "As unmanned study cafes increase, cases where consumers pay without fully understanding the terms of use and face difficulties with refunds are also increasing." She added, "We will continue to monitor such new transaction types that may harm consumers, guide ways to prevent damage, and protect consumers."

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