The Fair Trade Commission has revised unfair contract terms used by postpartum care centers nationwide. Excessive penalties for canceling or terminating contracts, limitations of liability for infection incidents, and restrictions on writing negative reviews were all included as targets for improvement.
On the 24th, the Fair Trade Commission said it inspected the terms and conditions of 52 postpartum care centers nationwide and took corrective action after identifying unfair clauses in five categories.
Specifically: ▲ imposing penalties and reducing liability upon contract cancellation or termination (33 centers) ▲ exemption from liability for damages related to infections (37 centers) ▲ restrictions on online reviews (7 centers) ▲ no settlement when the expected delivery date changes (25 centers) ▲ exemption from liability for loss or damage to the mother's personal belongings (36 centers).
Postpartum care centers have become facilities that mothers and newborns essentially use immediately after birth, but consumer complaints have continued to be raised. From 2021 to the first half of this year, there were 1,440 related counseling cases filed with the Korea Consumer Agency (KCA). Recently, disputes over infection incidents and restrictions on writing reviews have also been reported one after another in online communities such as mom cafes.
In fact, some centers included clauses such as "no refund of the full deposit if canceled within 3 months of admission" and "no refund if discharged before 6 nights and 7 days," or stipulated "a 30% penalty on the deposit" for negative reviews written by mothers. There were also cases of evading responsibility for newborn infections by stating, "The center is not a medical institution and therefore bears no responsibility."
The Fair Trade Commission said the corrective action ensures reasonable refund standards are applied in line with the standard contract terms and the consumer dispute resolution criteria. It also eased consumers' burden of proof when infection incidents occur and removed restrictions on writing reviews.
The Fair Trade Commission plans to check whether the improved terms are actually observed on the ground and to encourage voluntary improvements, spreading the corrective cases across the industry.
An official at the Fair Trade Commission said, "Correcting unfair terms in postpartum care centers is part of consumer protection measures across the life cycle, following wedding preparation agencies," adding, "Through reasonable refunds, stronger accountability for infection incidents, and the guarantee of freedom to write reviews, we expect practical rights protection effects."