Maintaining consumer trust: the first step, establishing corporate refund policies.

Law firm Veat received a request from Company A (hereinafter referred to as “Client”), which provides game and community sponsorship services, to conduct a legal review related to its refund policy.

The Client is a company that provides game and community sponsorship services, and its structure allows users to participate in various activities by purchasing cash, points, paid items, and more. Accordingly, clear guidelines were needed for refund requests that could arise during the use of paid services.

The Client requested consultation from Law firm Veat in order to fulfill the specific conditions and procedures of the refund policy stipulated in the “Act on Protection and Use of Information in Electronic Commerce” (hereinafter referred to as “Electronic Commerce Act”) as a legal requirement.

Law firm Veat's Electronic Commerce Team thoroughly analyzed the refund regulations according to the Electronic Commerce Act and comprehensively reviewed the Client’s terms of service and refund policies posted within the service. During this process, it especially verified whether the scope of refunds and refund methods to be paid when a refund reason arises comply with legal standards.

Furthermore, after reviewing the possibility of double payments that could arise depending on the form of refund, it proposed additional measures to prevent the problem of double payments, so that the Client could minimize significant financial burdens and legal risks while also avoiding a negative impact on the trust relationship with consumers.

Guidance on establishing a correct refund policy for service providers

The Electronic Commerce Act stipulates that consumers have the right to cancel a contract, and that contract cancellation may be limited in cases where consumers have used the goods or services or their value has significantly decreased . The Act also stipulates specific procedures such as the cancellation right, limitations on the cancellation right, refund period, and refund method.

Furthermore, businesses must take measures to prevent consumers from obstructing the exercise of their cancellation rights and other rights, and must understand these measures and establish refund policies based on them.

Companies must comprehensively establish refund policies related to the proper and legally correct return of money already received in various situations, such as mid-term termination of service contracts or refund requests prior to service use. Therefore, we recommend that you seek the assistance of a legal expert who can examine these matters in various aspects to prevent consumer disputes and legal risks.

Law firm Veat, based on its expertise in various laws and regulations governing electronic commerce, such as the Electronic Commerce Act and the “Act on Regulation of Standard Contract Terms,” is assisting clients in complying with the legal requirements stipulated in each law.

If you require a legal review related to refund policies and other electronic commerce matters, please contact Law firm Veat.

Thank you.

Sincerely,

Law firm Veat