The Korea Consumer Agency (KCA) announced on the 5th that there is an increasing occurrence of cases where fees are automatically charged after participating in free trials or point giveaway events online, and that consumers need to exercise particular caution.
According to the agency, the total number of applications received for relief from online free trial damages from 2022 to the first quarter of this year is 151, with ▲26 cases in 2022 ▲35 cases in 2023 ▲71 cases in 2024, showing an annual increase. This year, 19 cases were received in just the first quarter.
The method of inducing regular subscriptions by using free trials as bait is becoming increasingly sophisticated. There have been cases where consumers were limited in their ability to cancel for a certain period, leading to missed deadlines, or were made to agree to long-term subscriptions, facing excessive penalties for cancellation.
The types of damage by service type are as follows: ▲'Data management' such as document and video editing accounted for 35.8% (54 cases), followed by ▲'Lifestyle information' such as health management at 31.1% (47 cases), and ▲'Digital content' such as language learning at 30.5% (46 cases). As for damage types, ▲inadequate notice of automatic subscription conversion accounted for 34% (56 cases), ▲restrictions or disruptions on cancellations 32.1% (53 cases), ▲unjust fee charges 21.2% (35 cases), and ▲refusal to cancel or charging penalties 12.7% (21 cases).
91.2% of the cases of damage from free trials began through online banners or pop-ups. The amount of damage was less than 100,000 won in 72.6% (109 cases), which constituted the majority.
However, among the 151 applications for relief, only 41.7% (63 cases) of consumers received full compensation for their damages. The agency emphasized that consumers should "always check the duration of the free trial period in advance."
The agency plans to recommend improvements to businesses that inadequately follow consent procedures before converting to regular payments and to notify relevant authorities in cases of legal violations. Furthermore, it urged consumers to check the ▲free trial period ▲be cautious of events requiring payment methods ▲and confirm cancellation processes and customer service contact information when automatic conversion occurs.