Consumer Rights
Important consumer rights granted under the Consumer Protection Act (hereinafter the “Consumer Protection Act”):
1. The business operator that designs or manufactures a product or provides a service (hereinafter referred to as the “business”) is strictly liable for damages to a consumer’s life, body, health, or property caused by defects in the product or service. The business operator that imports the product or service is subject to the same strict liability (Articles 7 and 9 of the Consumer Protection Act). The distributor of the product or service is also liable for damages caused intentionally or negligently (Paragraph 1, Article 8 of the Consumer Protection Act).
II. Standard-form contract terms are contract provisions drafted in advance by a business for use in contracts with an unspecified and numerous group of people. In case of doubt, they shall be interpreted in the manner most favorable to consumers (Consumer Protection Act, Article 11). Standard-form contract terms that violate the principle of good faith and are manifestly unfair to consumers are void (Consumer Protection Act, Article 12; Enforcement Rules, Articles 13 and 14; the courts have jurisdiction to review them). Unusual provisions do not form part of the contract (for example, provisions printed in excessively small type, unclearly printed or placed on the reverse side, or content beyond what ordinary consumers can understand based on their usual knowledge and social experience) (Consumer Protection Act, Article 14). A standard-form contract must provide consumers with a reasonable period of no more than 30 days to review all its terms (Article 11 of the Enforcement Rules of the Consumer Protection Act; the length of the review period may refer to standard-form contract templates announced by the central competent authority). If a consumer signs or seals a standard-form contract, the business operator must provide the consumer with the original copy of that contract (Consumer Protection Act, Article 13, Paragraph 3).
III. Distance contracts (contracts entered into between consumers and businesses through broadcast, television, telephone, fax, catalogs, newspapers, magazines, the Internet, flyers, or other similar means, where consumers are unable to inspect the goods or services beforehand) and off-premises contracts (contracts entered into between businesses and consumers at their homes, workplaces, public places, or other locations without prior invitation). Since consumers are unable to inspect the goods beforehand, they may return the goods or notify the business in writing to cancel the sales contract within seven days of receiving the goods, without stating a reason and without bearing any fees or payment (Article 19 of the Consumer Protection Act). The business must collect the goods from the original delivery location or an agreed location within 15 days from the day after receiving the notification, and both parties must restore the other party to its original position after cancellation (Article 19-2 of the Consumer Protection Act). If the goods received by the consumer are damaged, lost, or altered due to necessary inspection or reasons not attributable to the consumer, the consumer’s right to cancel under Article 19 of the Consumer Protection Act shall not be extinguished (Article 17 of the Enforcement Rules of the Consumer Protection Act). Before receiving the goods or accepting the services, consumers may also notify the business in writing to cancel the contract in accordance with Paragraph 1 of Article 19 of the Act (Article 18 of the Enforcement Rules of the Consumer Protection Act).
4. Consumers are not obligated to keep products sent directly by a business without having been ordered. Consumers may notify the business to collect the products within a reasonable period. If the business fails to collect them within that period, or the consumer is unable to provide notice, the products are deemed abandoned by the business. If the business does not collect the products within one month after shipment and the consumer has not indicated acceptance, the consumer has no obligation to return them (Consumer Protection Act, Article 20).
V. The following must be stated in an installment sale contract:
1. Down payment;
2. The difference between the total amount payable for all installments, including interest and other additional fees, and the cash transaction price;
3. Interest rate. If the interest rate is not stated by the business, it shall be calculated at an annual rate of five percent of the cash transaction price. If the business violates the provisions of 1 or 2, the consumer is not obligated to pay any amount exceeding the cash transaction price (Article 21 of the Consumer Protection Act).
VI. Businesses must ensure that their advertisements are truthful, and their obligations to consumers may not be less than those stated in the advertisements (Article 22 of the Consumer Protection Act).
7. In lawsuits brought under the Consumer Protection Act, consumers may claim punitive damages of up to five times the amount of the harm caused intentionally by a business operator; for harm caused by gross negligence, they may claim up to three times the amount; and for harm caused by negligence, up to the amount of the harm (Consumer Protection Act, Article 51, as determined by the court).
VIII. Where numerous consumers suffer harm from the same cause or incident, twenty or more consumers may assign their claims for damages to a consumer protection organization (such as the Consumer Foundation), which may then file a class action (Consumer Protection Act, Article 50).