"Unable to Get a Refund"... Dispute Resolution Requests Surge on Fashion Platforms

Dispute Resolution Requests on Fashion Platforms Rise Annually
Most Filed Against Ably, Musinsa, and Kakao Style
Nearly Half of Cases Involve "Order Cancellation" Issues

On July 8, 2022, Mr. A purchased clothing for 386,000 won from a fashion platform. Four days later, he received the product, but since it was different from what he expected, he requested a return from the seller on the 19th. However, the seller refused the return, stating that the five-day return period specified on the product detail page had already passed.

Recently, as interest in fashion platforms offering convenient purchasing methods has grown, complaints related to order cancellations, product quality, and contract non-fulfillment have also increased, prompting consumers to exercise caution.

Yonhap News Agency

According to the Korea Consumer Agency on August 20, a total of 1,650 requests for dispute resolution related to four major fashion platforms (W Concept Korea, Musinsa, Ably Corporation, and Kakao Style) have been received over the past three years, showing an increasing trend each year. In particular, both last year and the first half of this year saw an increase of more than 30% compared to the previous year. Among these, about 80% of the applications were submitted by people in their 20s and 30s.

By company, the highest number of dispute resolution requests were filed against Ably Corporation, followed by Musinsa and Kakao Style. Ably Corporation accounted for 33.9% of the total, with Musinsa at 29.0% and Kakao Style at 25.2%.

In terms of reasons for the requests, "order cancellation" made up nearly half at 48.4%, followed by "quality" at 34.5%, and "contract non-fulfillment" at 7.7%. Order cancellation refers to the consumer's right to withdraw their intention to purchase and request a refund within a certain period after entering into a contract for goods or services.

By business, Ably Corporation and Kakao Style had the highest proportion of complaints related to "order cancellation" at 56.8% and 58.1%, respectively. For Musinsa and W Concept Korea, "quality" complaints accounted for 49.2% and 53.8%, respectively.

The Korea Consumer Agency held a meeting with major fashion platform operators and recommended proactive responses to prevent and resolve consumer damages, such as strengthening consumer protection policies as online intermediary sellers, enhancing education and management of partner businesses, and promoting voluntary dispute resolution. They also agreed to jointly develop and distribute practical dispute resolution guidelines for use in the field, and to expand mutual cooperation to reduce damages.

A representative from the Korea Consumer Agency emphasized, "To prevent damages when using fashion platforms or online shopping malls, consumers should carefully check the terms of transaction before purchasing, use credit cards rather than cash, and keep supporting documents in case of disputes." The representative also advised, "After receiving the product, thoroughly inspect it for defects and be careful not to damage the product before returning it."

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