Consumer damage from service brokerage platforms such as Sumpgo, Kreemong, and Tal-ing has increased in recent years.
According to the Korea Consumer Agency (KCA) on the 1st, a total of 498 consumer damage relief applications regarding the three companies were received from 2022 to last year. The number of applications received by year increased annually, with 93 in 2022, 156 in 2023, and 249 last year.
These service brokerage platforms operate by facilitating individuals (sellers) to provide services using their skills, knowledge, and experience to earn money.
Of the damage relief applications over the three years, 261 cases related to 'lifestyle services' accounted for 52.4% of the total. The most common type was cleaning (87 cases), followed by interior design (81 cases), repair and installation (53 cases), and moving (40 cases). Additionally, cases in video, photography, and audio made up 14.5% (72 cases), lessons and lectures 8.7% (43 cases), and information technology (IT) and programming issues 5.6% (28 cases).
Looking at the types of damage, 'contract non-fulfillment or incomplete fulfillment' by the seller was the most common, comprising 34.7% (173 cases). This was followed by rejection such as withdrawal of subscription at 25.5% (127 cases), complaints about quality and after-service (AS) at 24.7% (123 cases), and unfair practices at 14.5% (72 cases).
In particular, 22.3% (111 cases) of the applicants reported difficulties in resolving issues due to the seller's lack of contact.
Of the 498 applications for damages, 188 cases (37.8%) were resolved. However, only 25 cases were resolved through platform mediation or partial refunds and compensations.
Based on the findings, the consumer agency recommended the three platforms to ▲ strengthen the quality verification procedures for sellers' services ▲ provide sellers' contact information ▲ establish criteria for resolving consumer complaints and disputes ▲ and adjust brokerage fees for the mutual cooperation of platform users.
A representative from the agency noted, 'Consumers should draft contracts that include details about the work and completion date, cancellation, refund, and AS conditions, and given the challenges of transactions with private sellers, please verify seller information and proceed cautiously with transactions.'