– Tmon Co., Ltd. and Wemakeprice Co., Ltd. Ordered to Include Unrefunded Payments in Their Rehabilitation Plans –
The Korea Fair Trade Commission (KFTC, Chairman Han Ki-jeong) has decided to impose corrective measures (orders to act, cease and desist orders, and public notice orders) on Tmon Co., Ltd. (hereafter “Tmon”) and Wemakeprice Co., Ltd. (hereafter “Wemakeprice”) for failing to refund the cost of goods within three business days after a legitimate withdrawal of purchase, despite the goods not being delivered or the travel date being sufficiently far off.
Tmon, operating the online marketplace “Tmon” (www.tmon.co.kr and mobile app), mediated the sale of goods and travel products. From December 3, 2023, to July 24, 2024, the company failed to refund approximately KRW 67.5 billion (186,562 cases) to consumers within three business days after they withdrew their purchases.
Wemakeprice, operating the online marketplace “Wemakeprice” (www.wemakeprice.com and mobile app), also mediated the sale of goods. From March 27 to July 30, 2024, the company failed to refund approximately KRW 2.3 billion (38,500 cases) within the required period after consumers withdrew their purchases.
These actions by Tmon and Wemakeprice (hereafter referred to collectively as “TMeP”) violate Article 18, Paragraph 2 of the Act on Consumer Protection in Electronic Commerce, which stipulates that communication sales operators (those who have received payment from consumers) must refund the full amount within three business days if the product is not supplied and the consumer cancels the order.
In July 2024, following a large-scale settlement and refund failure, TMeP filed for rehabilitation proceedings with the Seoul Bankruptcy Court on July 29, 2024. The court accepted the application and commenced proceedings on September 10, 2024. Rehabilitation procedures for TMeP are currently ongoing.
Considering this situation, the KFTC imposed a cease and desist order, a public notice order, and an order to act. This order requires TMeP to inform consumers through marketplace announcements and individual notifications (text messages or KakaoTalk alerts) on how they can check their outstanding refunds. Moreover, TMeP must include the unpaid refund amounts in its rehabilitation plan and submit it to the court.
If the rehabilitation plan is approved at the creditors’ meeting and subsequently authorized by the court, it is expected that consumers will be able to recover part of the unpaid refund amount in accordance with the plan.
The KFTC will continue to monitor violations of the Electronic Commerce Act by online platform operators and take active measures to protect consumers.