[Consultation] How to prevent reselling through the Terms of Use?]

Veat provides legal counsel regarding the “reselling” activity of specific members purchasing goods in bulk and reselling them.

A, which operates an online wellness mall, inquired about whether it could modify its terms of service to regulate the act of specific members purchasing goods in bulk and reselling them.

In substance, reselling products purchased by oneself is not illegal under the current law, unless it involves selling overseas direct-purchased goods. However, if this “reselling” activity hinders sales agreements with other buyers and causes the initial purpose of the company to engage in distribution activities, it constitutes an act that unfairly distorts trading order, and in this case, it is possible to regulate it through the terms of service.  

However, it is necessary to clearly establish criteria for bulk purchases and repeat purchases to ensure that ▲customers can reasonably anticipate

▲adjust the overall content of the contract fairly

to avoid being classified as unfair contract terms. If it falls under Act on the Regulation of Fairness in Contracting, it is not only void but can receive a corrective order and recommendation for correction from the Fair Trade Commission, and if it fails to comply, it can be sentenced to imprisonment for up to 2 years or a fine of up to 1 billion won.

Some argue that reselling is a means of investment, while others point out the speculative nature of reselling and advocate for regulation. In overseas countries, while acknowledging reselling activities, sanctions are being implemented against reselling that infringes on consumer rights.  

Law Firm Veat identifies the business model of the business and provides draft and review services for terms of service specifically tailored to the service. Those with inquiries are welcome to contact us at any time.  

Thank you.