'Encar, BobaeDream, KB Chachacha, and K Car' Refuse Refunds on 'Point Payment' Cancellations... Fair Trade Commission Corrects Unfair Terms

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[Sejong=Asia Economy Reporter Joo Sang-don] Online used car platforms such as Encar.com, Bobae Dream, KB Chachacha, and K Car have agreed to correct unfair terms that did not refund coupons (points) used during payment if the payment was canceled.

On the 26th, the Fair Trade Commission announced that it reviewed the terms of online used car platform operators and corrected such unfair terms.

Until now, Encar.com, Bobae Dream, KB Chachacha, and K Car did not refund coupons (points) used during payment if the payment was canceled.

A Fair Trade Commission official said, "It is reasonable to expect that coupons (points) used during payment would be refunded to customers upon cancellation as a restoration to the original state, but they were not refunded. This is an unfair clause that is unduly disadvantageous to customers and difficult for customers to anticipate considering all circumstances related to the contract and transaction practices."

Accordingly, the four operators deleted the relevant clauses or corrected them to provide the same points when a member requests payment cancellation.

The terms of Bobae Dream and KB Chachacha, which notified changes to terms without considering the importance of the changes and deemed approval if customers did not express refusal, will also be corrected. The Fair Trade Commission judged that while it may be practically difficult to notify each customer individually every time terms change and that prior notice of changes can substitute for individual notification, it is necessary to notify members individually so that they can fully understand when important changes affecting members' rights or obligations occur.

Additionally, clauses that exempt the company from all damages incurred by members without considering the company's fault when members fail to notify information changes, and clauses that did not refund usage fees for paid services uniformly and without limit regardless of the severity of inappropriate use when the company suspends (restricts) use or terminates contracts due to members' improper use, were also corrected.

Furthermore, clauses prohibiting "acts violating the terms and other service use regulations set by the company" and allowing the company to unilaterally terminate contracts if customers violate these were deleted.

A Fair Trade Commission official said, "By eliminating unfairness in the terms used by online used car platform operators, the rights and interests of many consumers entering the used car market in the future will be protected, and furthermore, a sound trading order will be established, leading to the revitalization of the used car transaction market."

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