Subscription economy providers such as music, movies, books, and regular delivery must clearly notify consumers of the relevant schedule when switching services from free to paid.
Consumers can easily apply for cancellation outside of business hours, and the option of a refund method is not limited to points.
The Financial Services Commission announced on the 3rd that it would announce the legislative amendment to the Enforcement Decree of the Specialized Credit Finance Business Act from the next day until February 15th.
Subscription economy refers to the provision of certain goods or services by a supplier when consumers regularly pay a certain amount.
Subscription economy services are provided in a variety of industries such as digital content (Netflix, Melon, etc.), regular delivery (Coupang, Gmarket, etc.), and books (Ready Books, Millie’s library, etc.).
Subscription economy operators often provide free and discounted events to secure customers, but after the end of this period, complaints are frequently raised as they often switch to paid services without proper guidance.
According to the amendment, the subscription economy business operator must clearly notify the subscribers with a paid conversion schedule.
The specific timing (at least 7 days before the end of the discount event and the time of the fee conversion) or method (written, voice call, text, etc.) will be reflected in the standard terms and conditions of credit card merchants.
The registration process is simple, but parts that had to go through a complicated process when canceled are also trimmed.
In the amendment, if you want to cancel the service, a basic rule has been prepared so that you can easily apply outside of business hours.
The choice of refund method was also made not to be unreasonably limited by points.
In addition, the amendment made it possible to reasonably loosen and apply the requirements for equity capital of major shareholders (4 times or more of the investment), etc., if banks and others wish to obtain a credit card business license.
When accrediting the banking business, it was considered that the strict requirements for large shareholders and financial requirements of the same level as the credit card business were examined in advance.
When the major shareholder of a female company (a credit finance company) is changed, the reporting deadline has been eased from’within 7 days’ to’within 2 weeks’.
/yunhap news
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