Dermatology 'Prepaid Treatment Fees' Now Freely Refundable at Any Time... Fair Trade Commission Overhauls Unfair Contract Terms

Contract Terms Revised at 15 Leading Cosmetic Clinics
Voluntary Correction of Six Major Unfair Clauses, Including Complete Transfer Ban

The early refund and transfer of pre-paid medical fees, used by cosmetic clinics such as dermatology and plastic surgery offices to lock in consumer funds through special promotional offers, will now be fully liberalized.

The Korea Fair Trade Commission announced on the 19th that, after a detailed review of prepayment contract terms at 15 well-known dermatology and cosmetic clinics nationwide—which had previously refused to return unused balances upon refund requests, banned all transfers to third parties, and even exempted themselves from liability in cases of medical accidents—it has corrected six major types of unfair contract clauses.

As a result of this action, consumers will be able to receive a full refund at any time—regardless of elapsed period—for the unused portion of pre-paid treatments, with costs only deducted for the number of sessions used and the statutory penalty of 10%. Furthermore, the right to transfer pre-paid treatment vouchers to third parties will also be guaranteed.

Until now, the cosmetic medical industry had frequently banned cancellations and refunds altogether for "discount event products," or imposed exorbitant penalty charges of 20–30% of the total payment for early termination. This has led to continuous consumer disputes. In fact, the number of consumer complaints regarding pre-paid treatment increased fivefold over the past four years, with as many as 83.1% of these cases related to contract cancellations and penalty disputes.

The Fair Trade Commission firmly stated that pre-paid treatments meet the criteria for a "continuous transaction," and therefore consumers have the right to terminate their contracts at any time. Accordingly, the 15 clinics have voluntarily revised their terms by removing all clauses denying refunds, and by stipulating that, in the event of early termination, only the cost of procedures already performed and a legal penalty of 10% (according to the Consumer Dispute Resolution Standards) will be deducted, with the remaining balance to be fully refunded to the consumer.

Many clauses used to unfairly shield clinics from responsibility or to obstruct the legitimate rights of customers have also been corrected en masse. Despite the Civil Act's general acceptance of claims assignment, contract clauses that completely banned the transfer or sale of pre-paid treatment vouchers to third parties—or limited them to one family member—have been abolished, so in the future, consumers may freely transfer them. Reflecting the specific nature of cosmetic treatment, where a physician’s personal expertise is critical, the contract change clause has also been normalized to allow contract termination and refunds when a designated physician resigns or goes on leave, and the consumer does not consent to a substitute doctor.

Additionally, broad waivers of civil or criminal liability for side effects based on a consumer’s refusal to have pre- or post-procedure photos taken, as well as coercive “no lawsuit agreements” that forbade customers from posting critical reviews in the media or filing any future legal claims, have been entirely deleted or amended in line with the Act on Regulation of Terms and Conditions, as they constitute unjust exemption from liability or restriction of litigation.

The Fair Trade Commission emphasized, "By fundamentally overhauling contract terms in the cosmetic medical field, where information asymmetry is high and disputes are frequent, we have greatly enhanced consumer rights and interests." The commission added, "Based on these changes, we will promote the establishment of standard contracts for this sector and will continue monitoring unfair contract terms in areas closely connected to the daily lives of citizens."

This content was produced with the assistance of AI translation services.