Abolition of Device Distribution Act... Jeonnam Province Takes Action to Prevent Consumer Harm

Increase in Contract-Related Damages for Elderly Consumers Found in Retailer Survey
Many Cases of Discrepancies Between Contract Information and Actual Charges; Educational Programs to Be Conducted

Scene from the meeting between related organizations and business operators for the protection of elderly consumers. Provided by Jeonnam Province

On July 22, Jeonnam Province announced that, due to the abolition of the “Act on Improvement of Distribution Structure of Mobile Communication Devices,” price differences for devices among retailers have intensified, raising concerns about potential harm to elderly consumers who have limited access to price information. In response, Jeonnam Province will work with consumer protection organizations in the Honam region to prevent such harm.

While the number of applications for relief from consumer damages related to mobile communication services has been declining over the past four years, the number increased by 20.7% (333 cases) from January to April this year compared to the same period last year (276 cases). In particular, among elderly consumers (aged 65 and above), the number of cases increased by 39.3% (39 cases) compared to last year (28 cases).

The main type of damage was contract-related, such as discrepancies between the device price or monthly bill explained at the time of contract and the actual amount charged. Contract-related damages accounted for 85.0% (3,475 cases) of the total, and among elderly consumers, 90.2% (537 out of 595 cases) were contract-related.

In response, Jeonnam Province, together with the Korea Consumer Agency and Jeonbuk Special Self-Governing Province, visited mobile phone retailers to investigate the actual status of device sales displays and advertisements. As a result, it was found that 18.9% (98 out of 518) of the retailers surveyed used terms like “free” or “zero cost” in their displays or advertisements without specifying detailed conditions.

Representative cases included advertising devices as “free” or “zero cost” when this was not actually the case (10.2%, 53 cases), and advertising as the “lowest price” without objective evidence (10.2%, 35 cases).

To prevent harm to elderly consumers at the point of sale from misleading claims such as “free” or “zero cost,” Jeonnam Province held a meeting on July 3 with mobile communication service providers and related consumer protection organizations, requesting their cooperation to ensure that business operators fulfill their obligation to provide contract information at the point of sale.

In the second half of this year, Jeonnam Province plans to conduct joint educational programs with consumer groups and city and county governments for elderly consumers. These programs will inform consumers about what to check before signing a mobile communication contract, as well as how to seek help from consumer counseling centers and how to respond if damage occurs.

Kim Juncheol, Director of the Job and Economy Division of Jeonnam Province, stated, “With the abolition of the Device Distribution Act, the conditions for purchasing mobile phones may differ from store to store. Do not rely solely on the promotional information provided by retailers; carefully review the contract details and make sure to complete a written contract.”

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