Consumer complaints related to overseas online purchase in the first half of 2018 increased by 65.7% year-on-year

The Korea Consumer Agency (President Hee-sook Lee) conducted an analysis of consumer complaints related to overseas online purchase*, and the analysis results found that a total of 9,482 cases were received in the first half of 2018, up 65.7% compared to last year (5,721 cases).

* Complaints lodged with the Cross-Border Transaction Consumer Portal (crossborder.kca.go.kr) operated by the KCA and the 1372 Consumer Counseling Center

□ (By type of purchase) consumer complaints related to direct purchase sharply increased by 186.6% year-on-year

The results of the analysis on 9,482 consumer complaints related to overseas online purchase revealed that the number of complaints related to ‘direct purchasing’ stood at 3,981 cases, sharply up 186.6% compared to last year (1,389 cases). In addition, among all overseas online purchase, ‘direct purchasing’ accounted for 42.0%, significantly up from 24.3% in 2017.

On the other hand, the number of complaints pertaining to ‘agent service (5,083 cases)’ including purchasing agent and shipping agent, increased by 44.5% compared to last year (3,518 cases), but it accounted for 53.6% of the consumer complaints related to overseas online purchase lodged in the first half of 2018, down from last year’s 61.5%. This shows that the trend in overseas purchase is changing from using proxy services to making direct purchases as consumers become more familiar with making direct purchases.
 

[Current Status of Consumer Complaints related to overseas online purchases]

* Others: unknown transaction type
 

 □ (By purchase item) ‘clothing and shoes’-related complaints were received the most, and complaints related to ‘accommodation and air services’ increased sharply

By item, ‘clothing and shoes’-related complaints accounted for 26.5% (or 2,431 cases), the largest proportion, followed by ‘accommodation (20.7% or 1,898 cases)’ and ‘flight ticket and airline services (18.0% or 1,648 cases).’ In particular, complaints associated with ‘accommodation’ and ‘flight ticket and air services’ sharply increased by 238.9% and 150.8%, respectively, compared to last year, and the increase is largely attributed to the increasing use of overseas hotel (airline) booking sites as the number of people travelling abroad grows.
 

□ (By reason for complaint) ‘delaying and refusing cancellation, refund and exchange’ accounted for 37.8%, the largest proportion

By reason for consumer complaints, ‘delaying and refusing cancellation, refund and exchange’ accounted for 37.8% (3,581 cases), the largest proportion, followed by ‘unfair charge for penalty and service fee, and dissatisfaction with prices (15.1% or 1,432 cases)’ and ’shipping service (missing/late/wrong shipping, product damage during shipping (12.3% or 1,170 cases).‘ And the number of complaints associated with ‘non-fulfillment of contractual obligations (incomplete fulfillment)’ and ‘unable to contact business operators and site closure’ more than doubled compared to last year, suggesting that initially agreed accommodation and airline services were not provided or transactions through suspected fraudulent websites increased.

□ KCA actively makes efforts to resolve consumer damage arising from cross-border transactions by expanding cooperation with overseas consumer organizations

Based on the results of the analysis on consumer complaints associated with overseas online purchases, the KCA plans to make efforts to prevent consumer damage arising from cross-border transactions. In particular, in regards to the rapid increase in the number of complaints related to overseas flight ticket booking and suspected fraudulent websites, it will focus on investigating transaction terms of ‘overseas flight ticket booking sites,’ and ‘the current state of suspected fraudulent transactions through SNS.’ 

Meanwhile, the KCA is actively making efforts to resolve cross-border transaction-related consumer damage by signing MOUs* with consumer protection organizations in countries causing multiple consumer damages, and securing contact points of business operators frequently causing consumer damage.

* MOU signing countries: the US, Japan, Thailand, Vietnam, Singapore, Hong Kong, the UK

In addition, the KCA emphasized that consumers should refer to a variety of information related to overseas purchases including ‘Guidelines on Overseas Direct Purchase’ and ‘Checkpoints for Prevention of Damage Arising from Overseas Direct Purchase’ posted on the ‘Cross-Border Transaction Consumer Portal’ before making overseas purchases, and also thoroughly check transaction terms and conditions in advance before making overseas online purchases that consumers cannot easily cancel or receive a refund for. It also advised consumers to ask for help from the ‘1372 Consumer Counseling Center (no regional code) in the case where consumer damage related to purchasing agents occurs, and from the ’Cross-Border Transaction Consumer Portal (http://crossborder.kca.go.kr)’ in case of direct purchase-related consumer damage.


Source: Korea Consumer Agency 2018.10.15. Press Releases