"Where Do I Cancel?"... From September, Subscription Service Dark Patterns Blocked and 'All-in-One Management' Introduced
Government Announces "Life-Oriented Service Improvement Plan"
Measures to Alleviate Everyday Inconveniences in Subscription and Leisure Sectors
#A, a 20-something office worker living in Busan, was recently shocked while checking his credit card statements. An online video service (OTT) he had signed up for during a 'free trial' event and forgot to cancel had been charging him every month for three months. In a hurry to cancel, he searched through the app but struggled for days because he couldn't find the cancellation menu. A said, "I wondered if companies are intentionally making it difficult to cancel in order to induce unintended payments."
In September, a new service will be launched that allows users to view and manage a variety of subscription services—including OTT, music streaming, and e-books—at a glance. Until now, the process for signing up and paying has differed by provider, making it difficult for consumers to manage subscriptions individually, which has resulted in unwanted recurring payments.
Battery Subscription Service Launch... Lowering the Barrier for Electric Vehicle Purchases
The government is working to resolve everyday inconveniences in subscription, leisure, and cultural sectors as part of efforts to boost domestic demand by enhancing the competitiveness of the service industry. On June 19, the Ministry of Economy and Finance announced a plan to improve life-oriented services at a meeting of the Emergency Economic Headquarters and the Economic Ministers.
First, the government plans to strengthen personal information protection by leveraging the Financial Security Institute’s secure system, while making it easier for consumers to check their subscriptions. To root out dark patterns that make cancellations difficult, the government will enforce the E-Commerce Act and will prepare detailed guidelines for businesses by September. Furthermore, by December, explicit prohibitions against dark patterns will be added through amendments to the Telecommunications Business Act and other relevant laws.
The rapidly growing home appliance subscription system will also be improved. The obligation to display the 'total subscription period cost' for household appliances such as refrigerators and air conditioners will be expanded, enabling consumers to compare prices more intuitively. In addition, if a consumer is unable to use an appliance subscription service during the subscription period due to reasons attributable to the provider—such as the discontinuation of parts—the system will be revised to allow not only refunds or compensation for the remaining period but also exchanges for the same product, thereby expanding consumer choice.
The government will also support the introduction of 'electric vehicle battery subscription services' to lower the barrier to EV purchases. Consumers will be able to buy just the vehicle body and use the battery—which accounts for about 40% of the vehicle price—by paying a usage fee. Through this, the government aims to significantly reduce the initial cost burden of purchasing an electric vehicle. In the second half of the year, the government will amend the Automobile Management Act to improve the system for distinguishing between vehicle body and battery ownership.
Restricted view seats at Seoul Jamsil Sports Complex Olympic Main Stadium. Online community
View original imageMandatory Notification of Restricted View Seats... Airlines With High Cancellation Rates to Face Disadvantages in Route Allocation
Practical measures will also be implemented in the leisure and cultural sectors. Industry self-regulation standards will be established for 'restricted view seats' at performances or sporting events, where normal viewing is difficult. Starting from the first quarter of next year, ticket sellers will be required to notify consumers when selling restricted view seats. An official from the Fair Trade Commission explained, "If companies fail to indicate restricted view seats, they will face fines or corrective orders for violating the E-Commerce Act."
In addition, to prevent airlines from canceling tickets without notice, airlines with high cancellation rates will face disadvantages in route allocation starting next year. An official from the Ministry of Land, Infrastructure and Transport said, "If unilateral cancellations accumulate, airlines will receive penalties in the operational reliability evaluation," adding, "As route competition among airlines is fierce, we expect this measure will encourage more responsible service." To address the difficulties faced by households raising pets, a 'mobile pet funeral service' will be officially introduced in December.
Furthermore, to increase transparency in the management fees of rental housing, licensed real estate agents will be newly required to provide joint management fee explanations starting in August. To promote the reuse of empty bottles, guidelines on return standards will be distributed in August. Considering the collection costs incurred by retailers that accept returned bottles, the handling fee will also be raised starting in December.
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This set of measures is part of the life-oriented service quality improvement tasks under the broader goal of 'enhancing the competitiveness of the service industry,' which was selected as a key policy initiative following the inauguration of the Lee Jaemyung administration last year. Joo Hwanwook, Policy Coordination Officer at the Ministry of Economy and Finance, stated, "We will continue to identify tasks that improve everyday convenience and add enjoyment to daily life, and we will closely cooperate with the National Assembly for the enactment of the Framework Act on Service Industry Development as soon as the parliamentary committees are formed in the second half of the year." Currently, four versions of the Framework Act on Service Industry Development are under discussion in the standing committee subcommittees of the National Assembly, with public hearings and article-by-article reviews scheduled.
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