E-commerce settlement delay and legal response and practical guide for travel intermediary platforms.
Article posted in 2024-08-09 14:40:43 | VEAT
Law firm Veat received a request from travel intermediary platform A ("hereinafter referred to as the client") to review measures to resolve the delayed settlement issue from an e-commerce company.
The client acts as an intermediary for travel agencies and travel programs, providing services by registering as a seller on the e-commerce company. However, due to the fault of the e-commerce company, the settlement was delayed, causing difficulties in the company's operations, and they sought help from Law firm Veat.
First, Law firm Veat's e-commerce team thoroughly reviewed the contract relationship with the travel agency, the contract relationship with the e-commerce company, and the contract relationship between the company and the client. Through this, they identified the provisions related to settlement payment in each contract and reviewed the legal measures that could be taken in the event of a problem due to the fault of the e-commerce company.
As a response measure the client could take, Law firm Veat's e-commerce team reviewed whether the company could cancel direct transactions and proceed with alternative transactions if the e-commerce company’s settlement payment delay caused difficulties in providing travel programs, whether it could apply for a pre-lien to secure claims against the e-commerce company, and comprehensively reviewed and proposed measures to reduce the legal responsibility and client's risks regarding unpaid settlement.
As settlement delays and payment delays can have a significant impact on the client’s financial stability and customer trust, Law firm Veat’s e-commerce team quickly reviewed the legal issues and presented the optimal response measures.
What should you do if a settlement payment delay or non-payment issue arises on an e-commerce platform?
According to Article 15 of the “Act on Consumer Protection in Electronic Commerce,” a telecommunications seller must take the necessary measures to supply goods to the consumer within 3 business days from the date the consumer pays all or part of the payment, in the case of telecommunications where the seller receives all or part of the payment from the consumer before supplying the goods. If the seller becomes aware that it is difficult to supply, it must promptly inform the consumer and seller and must refund the entire or part of the payment received or take measures necessary for the refund within 3 business days.
When a settlement payment delay occurs, the seller can consider various legal measures. It can also take civil measures such as a pre-lien, and if the e-commerce company sufficiently foresaw a situation where it would be unable to pay settlement and concealed it from the seller, fraud charges could be brought.
Therefore, we recommend that the seller consult with a lawyer who has handled many cases involving electronic commerce sites, such as online sites, to obtain legal assistance to determine what data, such as transaction records, should be collected and what legal measures, such as pre-lien or mediation, are possible.
Law firm Veat’s e-commerce lawyers continuously update changing e-commerce legal information and, based on a deep understanding of e-commerce law, contract law, and criminal law, systematically guide legal procedures and response measures to help clients resolve issues and overcome challenges.
The delayed settlement and non-payment issues in e-commerce can cause significant management risks for sellers and businesses. If you need legal advice on these payment delay issues, please contact Law firm Veat.
Thank you.
Sincerely, Law firm Veat