The Fair Trade Commission (FTC) logo is seen at the FTC offices inside the government complex in Sejong on April 25, 2023. [NEWS1]
It is unfair for concert halls and ticketing platforms to deny membership refunds just because members cancel their subscriptions after receiving benefits, Korea's antitrust watchdog said Wednesday.
The Fair Trade Commission (FTC) announced that it had reviewed the terms and conditions of paid memberships of 19 performance venues and ticketing platforms and persuaded nine operators to voluntarily revise unfair clauses.
The problematic clauses denied refunds to members who canceled their subscriptions after a certain period had passed or after receiving benefits through events and promotions.
“The penalty, or nonrefundable amount, must be set at a reasonable level that reflects the actual economic losses suffered by the business even when a contract is terminated midway at the consumer’s request,” the FTC stated.
Under the revised policies, operators agreed to provide full refunds within a set period of 14 to 30 days after joining the membership program. Operators will now deduct only a corresponding penalty amount before refunding the remaining balance if members have already used benefits provided through the membership.
Some performance venues were criticized for reducing refunds twice — once based on how long the membership had been used and again for services used during that same period.
The operators agreed to revise the clauses so that only the larger of the two amounts would be deducted going forward.
The interior of Busan Concert Hall, shown here in a vineyard style with the pipe organ in the blue backdrop [CLASSIC BUSAN]
The FTC also flagged cases in which companies gave members reward points upon sign-up and later deducted the value of those points from refunds when members canceled their subscriptions early.
The regulator determined that the practice unfairly reduced the refund burden on businesses because reward points are less flexible and generally worth less than cash.
Companies will now recover points rather than cash under the revised rules. Points can be used for refund deductions only when the remaining point balance is insufficient.
The FTC also ordered corrections in cases where operators revised terms and conditions through implied consent or failed to properly notify individual members.
The regulator also ordered revisions to vague clauses on membership rejection and contract termination, with phrases such as “difficult to approve” or “against policy direction.”
The review covered two ticketing platforms, Interpark and Club Balcony. The revision also covered 19 performance venues, including Seoul Arts Center in Seocho District, southern Seoul; Lotte Concert Hall in Songpa District, southern Seoul; and the National Theater Company of Korea in Jung District, central Seoul.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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