Consumer Dispute Settlement Committee Decides Lotte Rental to Reduce Installment Payments by 30% for Mutual-Aid Bundled Products

The Consumer Dispute Settlement Committee under the Korea Consumer Agency has issued a class action dispute resolution decision ordering Lotte Rental to reduce the installment payments of consumers by 30% regarding electronic appliance purchase contracts sold in combination with mutual-aid services.

The committee announced today (August 2) that it decided for Lotte Rental, the product seller, to reduce the total installment amount by 30% in connection with prepaid installment transaction cases linked to mutual-aid services and electronic appliance purchases.

The committee explained that this decision is significant as it recognizes the bundled relationship between prepaid installment transactions and product purchases, judging that the responsibility for incomplete sales lies not only with the mutual-aid company but also with Lotte Rental as the product seller.

Previously, 221 consumers who applied for the class action dispute resolution requested compensation for damages, stating that they signed the mutual-aid product contracts after being told that the electronic appliances would be provided free of charge as gifts, but in reality, they were burdened with installment payments amounting to roughly three times the sales price of the electronics.

In response, Lotte Rental argued that it had no legal responsibility as it was not involved in guiding the free provision of electronic appliances, and that if consumers submit relevant evidentiary materials, it could waive a portion of the remaining installment payments without requiring the return of the goods.

However, the committee recognized the bundled relationship between the two contracts based on factors such as the term mutual-aid service being written in the product name section of the installment purchase contract, and the fact that consumers could not purchase the electronic appliances separately without the mutual-aid contract.

The committee also judged that since Lotte Rental delegated sales activities through a general sales management agency contract and managed and supervised happy call contents, it had the responsibility of failing to prevent the possibility of incomplete sales despite being able to perceive it.

Nevertheless, the committee adjusted the installment debt owed to Lotte Rental to be reduced by 30%, taking into account that consumers had already received and were using electronic appliances worth over 1 million won, that they could use mutual-aid services or receive partial refunds upon completing payments to the mutual-aid company in the future, and the necessity for a swift dispute resolution.

The parties must notify whether they accept the mediation proposal within 15 days from the date they receive the decision letter, and if both sides accept it, it will have the same effect as a judicial settlement.

The committee plans to proceed with relevant procedures so that if Lotte Rental accepts the mediation proposal, identical compensation can be provided to victims who did not participate in the mediation process.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.