JYP, SM, YG, & HYBE Accused of Exploitation in Idol Merchandise Sales

The FTC issued corrective orders and imposed a 10.5 million KRW (approximately 8,000 USD) fine on the online merchandise sellers of popular idols on August 11. The companies affected by this ruling include Weverse Company, YG Plus, SM Brand Marketing, and JYP360.

Upon investigation, it was discovered that these companies had breached e-commerce regulations by enforcing withdrawal periods that were shorter than the legally required ones, denying refunds unless a video was provided showing the unboxing of the product, and neglecting to disclose the estimated delivery date of the purchased items.

As per the existing e-commerce law, consumers can exercise their right to cancel a purchase within seven days of receiving the goods. In case of a defective product, this right extends to three months. Furthermore, consumers are entitled to cancel the purchase even if the packaging is damaged, provided it is for the purpose of inspecting the contents.

A representative from the FTC has declared that the actions of idol merchandise vendors, which involve making false or exaggerated statements, are in violation of e-commerce laws and impede consumer rights to withdraw from purchases. These violations were predominantly aimed at teenagers, who may not be fully aware of their rights under these laws. The FTC has taken action to identify and rectify these unlawful practices within the entertainment industry.

The source of the information is SafeTimes, which can be accessed through the provided link.