Chairperson Ju Biung-ghi of the Fair Trade Commission said on the 26th that "for now, there are no violations of the Fair Trade Act by Starbucks Korea" regarding the controversy over refunds for Starbucks rechargeable prepaid cards. Although a wave of consumers is demanding the return of balances on prepaid cards they had previously loaded amid the furor over disparaging comments about May 18, Starbucks Korea's terms, which say you can get a refund of the balance only after using at least 60% of the loaded amount, are not illegal.
The chairperson said at a "briefing with the press corps to mark the first anniversary of the launch of the Lee Jae-myung administration" at the Government Sejong Complex that "there is no reason to sanction Starbucks." This is because the standard terms and conditions for new-type gift certificates such as rechargeable prepaid cards stipulate that refunds are possible only after spending at least 60% of the product amount. It also means that Starbucks Korea's terms are based on the standard terms, making it difficult to take issue with them.
Even so, the chairperson said, "(Regarding the advertising phrase) Starbucks Korea talks as if the term 'tank' was used neutrally, but if it turns out it was used with another intent, then it should apologize to the public and consumers." The chairperson added, "If (the problematic phrases) were used with the intent to deceive consumers, that is a serious problem."
The chairperson said, "If, after reviewing the terms, parts that pose problems are identified, we will consider improvements." However, it is unlikely that the method will be to raise the numerical threshold of the refund standard in the standard terms for new-type gift certificates, which is currently 60%. The chairperson said, "If (this figure is lowered), it could be used for kkang (cash-out schemes), which is not desirable," adding, "For boosting domestic demand, activating (rechargeable prepaid) cards could be quite helpful."
On this ninth day since the controversy began, Starbucks Korea announced it would offer refunds unconditionally on its own. In response, the chairperson said, "That is fortunate," adding, "I think that is what should be done."
Regarding the system for large corporate groups with asset of 5 trillion won or more, the chairperson said, "Under the current law, there is no basis to regulate unfair practices by companies omitted (as affiliates of a large corporate group)." The chairperson continued, "We are considering a plan to revise the law to create grounds to examine whether there was private interest seeking or improper support when an omission is uncovered, for corporations that evaded regulation due to omission." The chairperson added, "In a situation where global competition is accelerating and we must win through technological innovation, there must never be unnecessary waste of human and material support within a corporate group for the sake of hereditary management."