Hit With Huge Penalty Fees While Planning a First Birthday... FTC Urges Parents to Carefully Review Doljanchi Contracts

146 Dispute Mediation Cases in the Past 3 Years
Mostly "Refusal to Cancel Contracts" and "Excessive Penalty Charges"

#1. Consumer A requested to cancel the contract for a first-birthday party scheduled for July 2025 about three months in advance due to personal circumstances. Under the Consumer Dispute Resolution Standards, a full refund should have been possible, but the company refused, citing its own terms and conditions that state, "If more than 7 days have passed since the contract date, no refund will be made in the event of cancellation."

#2. Consumer B found that the schedule of the photo snap studio introduced by the company was already fully booked and tried to use another studio. However, the company threatened that "the event cannot be held if you use a provider other than the one we introduced." When B then requested to cancel the contract, the company refused to return the deposit, saying that "a refund is only possible up to 90 days before the event date."

As the birth rate has recently shown a modest recovery, consumer damage related to the use of first-birthday party services to celebrate a child's first birthday has been increasing, calling for particular caution. In particular, with the spread of the "small luxury" consumption culture, services have become more upscale and segmented, and this has led to various types of disputes, such as refusal to provide refunds upon cancellation of contracts and inadequate notice of additional costs.

Table setting for a doljanchi in the Vista Walkerhill Seoul "Super Spa Suite". The company shown in the photo is not related to the article. Walkerhill.

According to the Korea Fair Trade Commission and the Korea Consumer Agency on the 12th, there were a total of 146 applications for damage relief related to first-birthday parties filed with the Korea Consumer Agency over the past three years (2023 to 2025). The number has steadily increased from 43 cases in 2023 to 53 cases in 2025. In most cases, the disputes arose when consumers sought to cancel contracts due to unavoidable circumstances after signing, and the companies restricted the refund of deposits.

The government, in order to prevent such damage, urged consumers to check not only the basic services before signing a contract, but also the transaction terms of additional services such as photography, costumes, and makeup. It also advised consumers not to be misled by deceptive advertisements that claim "No. 1 in the industry" or "the biggest discount ever" without objective grounds, and instead to verify the actual size of the business and customer satisfaction.

An official from the Korea Fair Trade Commission stressed that "Business operators must provide specific explanations of fees and penalties for breach of contract before signing, and consumers must put all special terms and conditions in writing in the contract so that they can be used as evidence in the event of a dispute." If it is difficult to resolve a dispute autonomously, consumers can seek assistance through the "1372 Consumer Counseling Center" or "Consumer24."

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