|
#701, Seoul YWCA, 1-1, Myeongdong 1-ga, Jung-gu, Seoul (Postal code: 100-021)
|
Provision Date: |
December 21, 2009 |
|
Person in Charge : |
Secretary-General Lee Jeong-su |
|
|
Assistant Administrator Jo Jun-ha |
|
Tel: |
774-4050
010-7665-3013 |
Consumer alert regarding scammers who promise consumers that they will list advertisements on the Internet or telephone directories, but later charge unjustified fees.
Counseling regarding scammers who call the owners of small businesses and promise to list advertisements on the Internet or telephone directories and charge unjustifiable fees later are increasing.
According to an analysis of consumer counseling received by consumer-related organizations in 2009, a total of 843 cases of counseling regarding scammers who call the owners of small businesses and promise to list advertisements on the Internet or telephone directories. It is reported that 70-80 damage cases occur each month.
Counseling cases regarding signing a contract after an insufficient explanation about the contract or a unilateral charge of fees occur the most.
Among the counseling regarding the inducement of telephone advertisement, complaints about sales methods showed the highest rate (48.2%, 406 cases). Among them, counseling regarding complaints of signing a contract without sufficient explanations or information or unilateral fee charge methods after signing a contract was 310 cases.
#Case 1. A scammer called me during my busy work time, and promised me that he would make an Internet homepage in a very fast talking mode, so I unconsciously told him, "Yes, yes." Later, they sent me documents to my fax and mail. They did not give me detailed information, and I had not even received a contract, but they started charging fees on my telephone bills, telling me that they have already constructed an Internet homepage for me.
#Case 2. A scammer told me that he would list an advertisement in the telephone directory, and insisted for me to receive their brochures and samples, so I accepted their offer. After I received them and read them carefully, I decided not to sign a contract. However, they told me that, because I received their brochures and samples, a contract had already been established. They are charging fees unilaterally.
Such scam cases cannot be resolved easily when disputes occur because it is not easy to prove the terms of a contract.
In the case of such contracts, it is not easy to prove the terms of a contract when disputes occur because the contract was established on the phone and small fees were charged to telephone bills, so consumers end up paying the charges.
In addition, in most of the damage cases, consumers were small business owners, not consumers, so the current regulations regarding telemarketing, such as the Door-to-Door Sales Act or the Communication Network Utilization and Information Protection Act cannot be applied to such scam cases. At present, resolving such cases is not easy.
Half of the problem businesses are using names similar with those of big companies.
In particular, about half of the damage cases (49%) are related to companies which were using names or expressions similar with big companies such as ‘114’, ’KT', and ‘Korea Telecom’, but those companies turned out to be not related to the big companies at all.
Companies, which use such similar names, pretend to be famous big companies, so consumer damage was estimated to be big. Those scam companies close down their business or disconnect contact numbers after signing contracts.
Before signing a contract, consumers should check important information about the contract and take an appropriate action immediately when unjustified fees are charged.
Accordingly, when signing a contract after receiving a telemarketing telephone call, consumers should carefully check the name of the business, contract details, and fees. After signing a contract, consumers should receive documents related to the contract. When disputes occur without receiving such documents, consumers should check their telephone records and check the contents of telephone bills beforehand.
If unjustified telephone bills were charged without signing a contract or after canceling a contract, consumers should immediately notify the telephone company which sends the bills and request to stop charging.
The Korea National Council of Consumer Organizations is planning to request the revision of related regulations and laws and to take strong actions against such cases by continuous monitoring.
Accordingly, the Korea National Council of Consumer Organizations, together with the Fair Trade Commission, is investigating ways to revise the laws in order to prevent such cases effectively. Through the counseling offices of group members, we are continuously monitoring related damage cases.
In addition, the Fair Trade Commission, local government agencies, and telecommunication companies plan to work together to take strong actions.
Appendix: Statistics of damage cases of telephone advertisement scams
December 21, 2009
The Korea National Council of Consumer Organizations
------------------------------------------------ Group Members --------------------------------------------
Green Consumers Network, Korea Federation of Housewives Clubs, Citizens Alliance for Consumer Protection of Korea, National Council of Housewives Classes, Korea Women's Association, Korea Consumer Affairs Institute, Korea Consumer Education Center, Consumers Union of Korea, National Council of YMCAs of Korea, YWCA of Korea
[Appendix: Statistics of damage cases regarding telephone advertisement scams]
◆ counseling cases by region
|
Region |
No. of counseling cases |
Percentage |
|
Seoul, Incheon, Gyeonggi |
283 |
33.6% |
|
Gangwon |
74 |
8.8% |
|
Chungbuk |
29 |
3.4% |
|
Daejeon, chungnam |
117 |
13.9% |
|
Jeonbuk |
78 |
9.3% |
|
Gwangju, Jeonnam |
23 |
2.7% |
|
Daegu, Gyeongbuk |
82 |
9.7% |
|
Busan, Ulsan, Gyeongnam |
152 |
18.0% |
|
Jeju |
5 |
0.6% |
|
Total |
843 |
100.0% |
◆ Type of Advertisement
|
Type |
No. of counseling cases |
Percentage |
|
Internet ad |
514 |
61.0% |
|
Tel ad |
259 |
30.7% |
|
Signboard, electronic display ad |
30 |
3.6% |
|
Cable TV ad |
18 |
2.1% |
|
Local newspaper ad |
12 |
1.4% |
|
Flyer ad |
5 |
0.6% |
|
Bus, ATM ad |
5 |
0.6% |
|
Total |
843 |
100.0% |
◆ Reasons of counseling
|
Reason |
No. of counseling cases |
Percentage |
|
Method of entering into a contract |
406 |
48.2% |
|
Contract revocation and cancellation not allowed |
192 |
22.8% |
|
Service complaints |
132 |
15.7% |
|
Excessive cancellation charge |
52 |
6.2% |
|
Excessive fee charge |
43 |
5.1% |
|
Unfair contract |
12 |
1.4% |
|
Other |
6 |
0.7% |
|
Total |
843 |
100.0% |
◆ Results of counseling processing
|
Processing Type |
No. of Cases |
Percentage |
|
Counseling and information provided |
615 |
73.0% |
|
Contract cancellation processed |
186 |
22.1% |
|
Contract fulfilled |
17 |
2.0% |
|
Notification to concerning organizations |
8 |
0.9% |
|
Other |
17 |
2.0% |
|
Total |
843 |
100.0% |
◆ Businesses using names similar with those of big companies
|
Similar Name |
No. of Cases |
Percentage |
|
114 |
249 |
29.5% |
|
KT |
154 |
18.3% |
|
Korea Telecom |
10 |
1.2% |
|
Not using similar names |
430 |
51.0% |
|
Total |
843 |
100.0% | |
