As product transactions through social media (SNS) markets increase, consumer damage is also rising. Experts advise that prior management and oversight should be strengthened.
According to the Seoul Electronic Commerce Center on the 5th, as of the end of July this year, there have been 15 damage counseling requests for the fruit sales company 'Submarket,' which operates primarily through Instagram and YouTube ads. Dozens of damage reviews have been posted on SNS and blogs, and the total, including damage comments, amounts to hundreds. To verify the facts, I ordered 4 kg (16 pieces) of white peaches from Submarket on the 21st of last month.
The ordered peaches arrived on the 30th of last month, ten days later. Four of the 16 peaches had mold on the stems, and eight had darkened flesh in various spots. Even the four that looked fine on the outside did not ooze juice or taste sweet as advertised.
When I requested a refund from Submarket, a company representative said, 'The parts that look like mold are not rotten, but a natural occurrence known as "core breakdown"' and added, 'A full refund is difficult, but we will refund only the 12 pieces that appear inconvenient to eat.' Only 26,100 won of the payment amount of 34,800 won was refunded.
Purchases reviews left on the sales site have also disappeared. They were 'hidden' to prevent exposure to general consumers. In response, a Submarket representative explained, 'Reviews that are promotional or include insults, defamatory language, unrelated content, or suspected false or repetitive reviews are automatically hidden according to our criteria.'
Such cases are not uncommon. A consumer identified as B, who purchased seven apple mangoes from Submarket in February, sent a photo of sliced rotten fruit to the customer service center but could not get a refund for three weeks. It was only after filing a complaint with the Haeundae District Office that he was refunded. Submarket is located in Haeundae District, Busan. B said, 'The purchase review has disappeared,' and 'If I hadn't filed a complaint, I don't think I would have received a refund.'
A Submarket representative said, 'Even if it was reported within 24 hours, there might be many difficulties, so the process may have been delayed. According to regulations, if there is a problem, refunds are being made.' He continued, 'Purchase reviews are automatically hidden based on monitoring results by scores. We will restore the hidden reviews' and 'We will improve to ensure that customers do not feel inconvenienced.'
◇SNS markets, refusal of refunds and hidden reviews leave consumer rights in the blind spot
This is not just an issue with this company. According to the Korea Consumer Agency (KCA), a person surnamed Kim, who co-purchased a smartphone at 344,000 won from the SNS market 'You & i Phone,' has not received the product for over two months. He posted about this situation on his blog, but it was deleted due to a seller's report. Additionally, a woman surnamed Park, who purchased three pieces of clothing from a specialized SNS market for parenting products, demanded a refund for the other two pieces when the quality of the first piece she received was poor, but the request was refused.
These actions are all prohibited under the Electronic Commerce Act. According to Article 17 of the Electronic Commerce Act, if a product that differs from the displayed or advertised content is delivered, the consumer can withdraw the application within seven days from the day they received the product. Refunds are made within three business days from the product return date. Article 21 of the same law also stipulates fines and corrective measures against businesses that refuse or delay application withdrawal refunds.
A Fair Trade Commission (FTC) official noted, 'If you received a defective item, you can withdraw the application and demand a refund. The principle is to restore it to its original state.' He added, 'Based on the investigation results, corrective orders, business suspensions, or penalty surcharges may be imposed.'
The act of hiding or deleting purchase reviews is also illegal. Article 3 of the Display and Advertising Act prohibits 'deceptive displays or advertisements.' In relation to this, the FTC imposed a penalty surcharge on Coupang last year for allegedly failing to expose unfavorable reviews to consumers or placing them disadvantageously in searches and sorting.
◇Consumer damage in SNS markets is increasing annually... need for strengthened prior management and oversight
According to the Korea Consumer Agency (KCA), the number of damage complaints related to SNS markets has been increasing yearly, from 110 cases in 2021 to ▲181 cases in 2022 ▲190 cases in 2023 ▲191 cases in 2024. As of the end of August this year, 156 complaints have been filed. Experts emphasize that as damage from SNS markets increases, prior management and oversight for consumer protection must be strengthened.
Lee Eun-hee, a professor of consumer studies at Inha University, said, 'We need to establish a certification system for returns, exchanges, and refunds regarding SNS markets or representative (intermediaries) so that consumers can know in advance if they can trust these companies.' She added, 'While it is important to actively inform about the complaint acceptance locations or related remedial systems, we must implement a system to block transactions with problematic companies beforehand.'
An FTC official stated, 'One of the bases for consumers' judgment when purchasing from SNS markets with low reliability and safety is reviews (purchase reviews).' He said, 'In terms of consumer protection and information provision, we are working on policies and legal amendments to ensure that companies cannot arbitrarily delete reviews and are disclosing operational regulations to consumers.'