The Fair Trade Commission temporarily blocked two online malls specializing in used iPhones that pocketed money but failed to deliver 600 million won worth of products.
The Korea Fair Trade Commission (FTC) said on the 8th that it ordered U&I Phone and Reold's enterprises, JB International and All That, to halt product sales. The two enterprises share the same representative.
According to the Korea Fair Trade Commission (FTC), JB International supplied used iPhones through an overseas purchasing agent on its online mall, U&I Phone, and advertised that delivery would take two to four weeks. In reality, however, it failed to deliver to consumers for months or did not refund payments to consumers who canceled orders.
After a surge in consumer complaints led to card payments being blocked on the online mall, JB International steered consumers toward cash transactions via bank transfer. In the process, JB International frequently changed its account numbers. In Oct., the representative of JB International opened a new online mall, Reold (enterprise All That), and continued the same conduct.
The Korea Fair Trade Commission (FTC) said, "The consumer harm caused by the conduct of JB International and All That is estimated to reach about 6 billion won," and noted, "Considering damages that have not yet surfaced, the scale could be larger."
The Korea Fair Trade Commission (FTC)'s temporary blocking of the online malls is an interim measure to prevent the spread of consumer harm. This measure remains in effect until the investigation and deliberation procedures against the enterprises are concluded.