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Netflix did not refund the fee to the customer who canceled the automatic payment, but it was reviewed by the Fair Trade Commission and the terms and conditions were modified.
The Fair Trade Commission announced on the 27th that it has reviewed the terms and conditions of six online video platform operators (Netflix, Wave, Teabing, Season, Watcher, Google YouTube) to correct seven unfair provisions.
Netflix, Season, and Watcha did not refund the monthly fee already paid in any case when the automatic payment was canceled.However, if the customer does not use the service or there is a business error, it will be refunded if canceled within 7 days after payment.
For example, a consumer who subscribes to Netflix’Standard Membership’ automatically pays 12,000 won on April 1 and is no longer using it. If it is canceled on April 6, the April fee can be returned.
Instead, if you watch the video at least once between April 1 and 6, you cannot get a refund for that month’s fee.
“The newspaper subscription can only be viewed by the person until that day, and after that, the online video can be viewed in a day,” said Hwang Yun-hwan, head of the FTC’s terms and conditions review section. “Consumers can freely receive a refund after viewing almost all programs. “I thought it wouldn’t fit the industrial model if it did.”
YouTube and Watcha had provisions that allowed customers to arbitrarily increase service fees without notifying customers in advance. This has been changed so that customers must agree in advance when price increases, and automatic payments are not renewed if they do not.
Netflix and Watcha have a free trial period when they sign up for the first time, but they decided to reinforce the explanation so that customers can clearly see that related services are paid for when they sign up.
Wave, Teabing, and Season had a provision to charge a penalty to the member upon refund, but the terms were modified to refund without penalty. The provisions that make it difficult for consumers to terminate the contract have also been amended.
Customers who suffered damage due to service defects are not compensated with cyber money (wave, teabing) rather than cash, and cyber money and paid services received as gifts are not refunded (teabing, watcha), or points that have been charged cannot be refunded (seasonal). One provision was also corrected. You can receive compensation with cash or cyber money, and you can get a fair refund for cyber money received as a gift.
YouTube, Teabing, and Watcha allowed business operators to close their member accounts, unclearly stipulating possible reasons. In the future, the account can be terminated only when the account is used for illegal purposes such as illegal copying of videos.
Wave and Teabing revised the unfair terms last year, and Google, Season, and Watcha are planning to implement new terms that corrected the unfair terms before February 10th. Netflix decided to reorganize the interface and start implementing it in March.
Manager Hwang said, “In consideration of the increase in consumer transactions based on online platforms and the increase in consumer damage, we plan to review the establishment of standard terms and conditions, if necessary, in areas with frequent consumer damage.”
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