Consumer complaints against overseas hotel booking platforms more than doubled in 1Q 2017

In the midst of ever-rising demand for overseas purchasing through online shopping platforms abroad, it is revealed that consumer complaints filed at Korea Consumer Agency (KCA) rose 28.0% to 2,632 cases in 1Q 2017 over the same period last year.

Out of total complaints against overseas purchasing, 61.2% (1,611 cases) represented agency-typed services including purchasing agency service and shipping agency service while the number of complaints filed at KCA for those agency-typed services decreased 0.6% in 1Q 2017 over a year ago.

On the contrary, the number of consumer complaints for overseas direct purchasing increased 116.2% to 681 cases, accounting for 25.9% of total complaints against overseas purchasing filed at KCA, in 1Q 2017 over the same period last year.

KCA said it shows Korean consumers have been more geared into direct purchasing from agency-typed purchasing service thanks to increased buying capabilities via overseas shopping platforms over years.

Among the 2,480 complaints which could be categorized, 1,812 cases represented complaints for purchasing of goods, down 20.2% over a year ago, but consumer complaints for buying of services were up 85% in 1Q 2017 over the corresponding period last year.

It is particularly noted that the number of consumer complaints against overseas hotel booking platforms field at KCA in 1Q 2017 increased 109.6% over a year ago. According to KCA, complaints from Korean consumers against the business operators in Singapore including Agoda.com and those in the Netherlands such as Booking.com rose 257.1% and 235.3% in 1Q 2017, respectively, over a year ago.

KCA said it would make every effort to prevent consumer damages arisen from cross-border transactions and plans to review the terms and conditions of global hotel booking sites this year. It also recommends consumers to read “Guidelines for Overseas Direct Purchasing” posted on the International Transaction Consumer Portal (http://crossborder.kca.go.kr).

Source:Korea Consumer Agency 2017.4.28 Press Release