Sejong City, Government Sejong Complex, Fair Trade Commission building. /Courtesy of News1

The standard for canceling accommodation contracts without a penalty fee is changing from "the day of the contract" to "within 24 hours after the contract."

The Fair Trade Commission announced that it revised the "consumer dispute resolution standard" to reduce disputes between the accommodation industry and consumers, and it will be implemented on the 27th.

According to the revised plan, the previous standard of "the day of the contract" was extended to "within 24 hours after the contract" to address the issue of unfair differences in cancellation times depending on the contract time. For example, a contract made at 9 a.m. allowed a 15-hour cancellation window, whereas a contract made at 9 p.m. only allowed a 3-hour window.

However, in cases where the intended use date overlaps with 24 hours after the contract, a proviso was added to limit the penalty-free cancellation time to midnight of the day before the intended use date. The Fair Trade Commission urged the accommodation industry to clearly notify the application timeframe to prevent disputes, granting a grace period if time is needed to adjust their internal reservation systems.

This revision also includes expanding the use of refurbished parts, previously limited to TVs and smartphones, to all electronic products and office equipment. Refurbished parts are restored to a state equivalent to new products in performance and quality, offered at about 50% cheaper than new products, and the warranty period is extended from two months to one year.

The Fair Trade Commission explained, "This measure reflects the global trend emphasizing environmental pollution prevention and resource recycling," and "If a business uses refurbished parts, the applicable items, details, and prices must be notified to consumers."

The basis for determining whether the warranty period for free repairs has expired has been changed to the "repair application date." This measure prevents the practice where repair costs are charged after the warranty period expires due to repair delays caused by the business, even if consumers applied for repairs within the warranty period. This revised plan applies to 14 categories, including electronic products, automobiles, kitchenware, and sporting and leisure goods and medical devices. Additionally, the warranty period for air conditioners has been newly set as two years for cooling-only models and one year for models with both heating and cooling functions.

With the amendment of the Animal Protection Act, the scope of application of the consumer dispute resolution standard has been expanded from existing dogs and cats to all pets as defined by the Animal Protection Act. A representative of the Fair Trade Commission noted, "We have improved dispute resolution standards in fields closely related to everyday life to enhance consumer protection and convenience," and "unified standards across similar industries and items, reflecting changing consumer behaviors."