The number of cases where Pilates businesses suddenly closed, causing harm to consumers, has increased approximately 13 times over the past three years.

According to the Korea Consumer Agency on the 30th, the number of claims for Pilates-related damage received by the agency in January was 112, representing a 13.1% increase from the same period last year (99 cases).

From 2021 to January of this year, the total number of claims for Pilates damage was recorded at 3,635.

By year, the number of damage cases has increased every year, from 662 in 2021 to 804 in 2022, 1,021 in 2023, and 1,036 in 2024.

A Pilates company that took upfront payment for classes and went out of business. /Courtesy of News1

In particular, among the damage claims, the most common issue was "refund and delayed reimbursement after closure." Last year alone, 142 claims for damage were received, marking a 12.9-fold increase compared to 2021 (11 cases).

In the results of processing 287 cases related to Pilates closures over the past four years, unresolved incidents due to business closures and loss of contact accounted for 79.1% (227 cases). Most of these cases were difficult to handle for damage compensation.

Among the 287 cases, in 260 where the payment method was confirmed, "cash and credit card one-time payment" accounted for the highest proportion at 66.6% (173 cases).

If the contract cannot be fulfilled due to business closures, the number of cases using "credit card installment" payment to exercise the payment objection right was limited to 21.5% (56 cases).

A representative from the consumer agency noted that individuals should avoid hasty cash payments or long-term (multiple) contracts, influenced by events like price discounts, and added that it is preferable to make payments over three months or more by credit card for amounts exceeding 200,000 won.

They further advised to secure documents that can prove remaining sessions and contract cancellation dates in case of damage, quickly communicate the intention to terminate the contract to the business, and exercise the payment objection right with the card company, adding, "Be sure to check if the company has a history of frequent class cancellations, instructor resignations, and other business issues before entering into a contract."