Consumer Rights
Key consumer rights under the Consumer Protection Act (hereinafter referred to as the “Act”):
I. Manufacturers who design or produce goods, and businesses that provide services (hereinafter referred to as “manufacturers”), are strictly liable for damages to consumers’ life, body, health, or property caused by defects in their goods or services. Businesses importing goods or services are subject to the same strict liability (Consumer Protection Act, Articles 7 and 9). Distributors of the goods or services described above are also liable for damages caused by intent or negligence (Consumer Protection Act, Article 8, Paragraph 1).
2. Standard-form contract terms are terms drafted in advance by a business for use in contracts with an unspecified number of consumers. Any ambiguity must be interpreted in favor of the consumer (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; review authority rests with the courts). Unusual terms do not form part of the contract (for example, terms printed in tiny or illegible text, on the back of the contract, or beyond what an average consumer could reasonably understand based on their knowledge and experience) (Consumer Protection Act, Article 14). Consumers must be given a reasonable period of up to 30 days to review all terms of a standard-form contract (Enforcement Rules of the Consumer Protection Act, Article 11; the review period may be based on standard-form contract templates announced by the central competent authority). If a consumer signs or stamps a standard-form contract, the business must provide them with an original copy (Consumer Protection Act, Article 13, Paragraph 3).
3. Mail-order transactions (contracts entered into between a business operator and a consumer via broadcast, television, telephone, fax, catalog, newspaper, magazine, the Internet, flyers, or similar means, where the consumer is unable to inspect the goods or services before entering into the contract) and off-premises transactions (contracts entered into between a business operator and a consumer at the consumer’s residence, workplace, a public place, or another location without prior invitation). Since consumers cannot inspect goods in advance, they may return the goods or notify the seller in writing to cancel the sales contract within seven days of receiving the goods, without giving a reason or paying any fees or costs (Article 19 of the Consumer Protection Act). Within 15 days after receiving the notice, the business operator must collect the goods from the original delivery location or another agreed location, and both parties must restore the other to their original position after cancellation (Article 19-2 of the Consumer Protection Act). If goods received by the consumer are damaged, lost, or altered as a result of necessary inspection or circumstances not attributable to the consumer, the right to cancel under Article 19 of the Consumer Protection Act is not extinguished (Article 17 of the Enforcement Rules of the Consumer Protection Act). Before receiving the goods or services, consumers may also cancel the contract by notifying the business operator in writing, 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 responsible for taking care of goods that a business sends them without an order. Consumers may set a reasonable deadline for the business to collect the goods. If the business does not collect them by the deadline, or the consumer is unable to contact the business, the goods are considered abandoned by the business. If the business does not collect the goods within one month of sending them and the consumer has not agreed to keep them, the consumer has no obligation to return them (Consumer Protection Act, Article 20).
V. Required Terms for Installment Payment Purchase Agreements:
1. Down payment;
2. The difference between the total amount payable, including interest and other additional charges, and the cash price;
3. Interest rate. If the seller does not specify an interest rate, the annual rate shall be 5% of the cash price. If the vendor violates the provisions of Sections 1 or 2, the consumer is not required to pay any amount beyond the cash price (Article 21 of the Consumer Protection Act).
6. Businesses must ensure that their advertising is truthful, and their obligations to consumers must be no less than what is stated in their advertising (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 loss for damage caused intentionally by a business operator; up to three times the loss for damage caused by gross negligence; and up to the amount of the loss for damage caused by negligence (Consumer Protection Act, Article 51, as determined by the court).
VIII. Where numerous consumers suffer harm from the same cause, a consumer protection organization (such as the Consumer Foundation) may file a class action if at least 20 consumers assign their claims for damages to it (Consumer Protection Act, Article 50).