The Korea Fair Trade Commission said on the 26th that it imposed a 4.5-month business suspension and 7 million won in fines on JB International and All That for taking payment for used iPhones without delivering them to consumers.
JB International operates U&Iphone, a used iPhone transaction site, and supplies used iPhones through overseas purchasing agents. It advertised that delivery would take 2–4 weeks after purchase, but in reality it failed for months to deliver to consumers, or did not refund payments to many consumers who withdrew their orders.
When consumer complaints made it difficult to sell products on the existing U&Iphone site, the operator newly registered a business under the trade name All That and opened a new site called Reold, then lured consumers in the same way to sell used iPhones, and likewise did not deliver to consumers or refund payments.
The Korea Fair Trade Commission (FTC) determined that these acts by JB International and All That violated Article 21(1)1 of the Electronic Commerce Act. The statute prohibits business operators or mail-order sellers from deceiving consumers or obstructing order withdrawals.
In addition, JB International accepted but did not carry out a corrective recommendation from the competent local government (Ilsandong-gu Office, Goyang) to properly operate a consultation channel needed to handle consumer disputes or complaints such as order withdrawals. The Korea Fair Trade Commission (FTC) said it filed a complaint with prosecutors against the representative under Article 40(2) of the Electronic Commerce Act.