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FTC fines Shinsegae for ‘nonrefundable stickers’ terming it unfair

Sticker posted on a product saying the product cannot be refunded once opened (FTC)
Sticker posted on a product saying the product cannot be refunded once opened (FTC)


South Korea’s antitrust watchdog on Wednesday fined retailers Shinsegae and Woori Home Shopping 2.5 million won ($2,100) each for violating e-commerce laws.

The Fair Trade Commission said the two firms were fined for their “nonrefundable stickers” that restricted the right of consumers to return a purchase and get a full refund if they open the package.

The agency noted that Shinsegae posted a sticker on products -- sold on online shopping platform 11th Avenue from April 20, 2017, to June 30, 2017, -- saying: “If you open the product after purchase, you cannot exchange or get a refund.”

Woori Home Shopping also sold products on Gmarket from Feb. 13, 2018, to April 17, 2019, with the following notice: “It is not possible to return the product when the package is opened or removed.”

The FTC judged that such a practice limits the right of consumers to return products if they are not satisfied. The e-commerce law stipulates that if a package is damaged, when consumers want to confirm its contents, they can return the products and claim a full refund. 

By Shin Ji-hye (shinjh@heraldcorp.com)
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