New Regulations Target Clarity in Wedding,Fitness Industries to Combat ‘Dark Contracts‘
SEOUL,SOUTH KOREA - Starting today,businesses in the wedding,gym,yoga,and pilates industries are legally required to prominently disclose pricing and contract terms to consumers upfront,a move aimed at preventing deceptive practices and “dark contracts” that have plagued these sectors. The Fair Trade Commission (FTC) announced the new regulations, mandating clear display of fees for both basic services and optional add-ons, as well as penalties for early contract termination and refund policies.
The crackdown comes in response to consumer complaints regarding hidden costs and unfair contract terms. Specifically, wedding services saw examples like additional dress design fees (KRW 1.15 million) and charges for original studio photos (KRW 300,000) levied on top of base packages. The FTC is also addressing concerns about excessive personal information requests and forced membership sign-ups. ”If consumer access is unreasonably restricted,it may constitute a violation of the labeling obligation,” explained an FTC official,advising businesses to “clearly display [pricing] with a banner that is easily identifiable.”
Beyond pricing,gyms,yoga,and pilates studios must now detail their fee structures - including basic fees and additional costs – and clearly outline refund criteria for early termination. Businesses are also required to disclose whether they subscribe to consumer damage compensation measures like warranty insurance, specifying the insurance agency, coverage period, and amount.
The wedding industry will also pilot a new service in the metropolitan area to independently match prospective couples with wedding halls, providing information on availability within the year.
The FTC will operate a six-month guidance period to allow businesses to adjust to the new requirements. Following this period, non-compliant businesses could face fines of up to 100 million won (approximately $75,000 USD).
