A significant number of pop-up stores, which have become a staple of consumer culture, are failing to comply with legal obligations such as obtaining consent for personal data collection, providing notices regarding portrait rights, and informing customers of exchange and refund policies, according to a recent report.

The Seoul Metropolitan Government announced the results of a survey on consumer awareness and an on-site investigation of pop-up stores operating in Seongsu-dong and The Hyundai Seoul, conducted in collaboration with the consumer group Green Consumers Network (GCN).

The awareness survey, which targeted 1,000 consumers nationwide (excluding Jeju Island) who have purchased items at pop-up stores, found that respondents visited an average of 3.1 pop-up stores over the past year and spent an average of 50,500 won per visit.

The primary reasons for purchasing were: <1> the availability of event-exclusive products that are not normally sold (57%), <2> the ability to see and purchase products in person (49%), and <3> discounted prices compared to regular retail (39%).

Numerous cases of consumer harm were also identified.

Major complaints included: <1> inability to purchase due to insufficient stock (29%), <2> long wait times due to incorrect information about queuing (24%), <3> inability to receive promotional gifts due to changes in event conditions (15%), and <4> lack of after-sales service (A/S) for products after the store closed (10%).

The on-site investigation revealed that legal procedures for consumer protection were insufficient.

None of the 24 stores surveyed obtained consent for the collection of personal information, and 23 stores failed to provide notices regarding the use of portrait rights.

Under the Personal Information Protection Act, those processing personal data must inform the data subject of the purpose of collection and use, the items to be collected, and the retention and usage period. Furthermore, personal information must be destroyed immediately once the retention period expires or the purpose of collection has been achieved.

Methods for notifying customers of exchange and refund policies were also found to be inadequate.

Among the 23 pop-up stores that sold products, only 12 indicated their exchange and refund policies on receipts, while 5 displayed them at the checkout counter, and 3 provided verbal explanations through staff.

The city explained, "Businesses are required to notify consumers of key terms and conditions clearly and easily before payment, but overall, these practices were found to be insufficient."

Kim Myung-sun, head of the Fair Economy Division at the Seoul Metropolitan Government, stated, "While the use of pop-up stores has become a established consumer culture, cases have been identified where personal information protection and consumer notification obligations are neglected because these stores operate for a short period." She added, "We will continue to monitor business compliance with the law in line with the changing consumption environment and do our best to protect the consumer rights of citizens."

(Photo: Yonhap News)