Consumers Initiate Collective Move for Rights Protection
By Lee Hyo-sik
Staff Reporter
Consumers have initiated a collective move to protect their rights against faulty products in what will be the first alternative dispute resolution (ADR) case.
The ADR scheme, which went into effect in March, allows a group of more than 50 consumers to file applications with consumer rights protection organizations for mediation for the resolution of disputes between consumer and companies.
The first ADR case was a complaint filed by apartment residents in North Chungchong Province over faulty window frames, according to the Korea Consumer Agency (KCA) Sunday.
It said its committee will hold a meeting today to deliberate on the case and decide appropriate compensation for affected residents.
The National Assembly passed the consumer rights law to better protect consumer rights by allowing a group of consumers to file a complaint with the KCA and consumer advocacy organizations if they suffer from defective products and substandard services.
Under the law, the KCA is required to post a public notice to invite more affected consumers for 14 days since the inception of complaints. It then refers the dispute to the arbitration committee for settlement on behalf of dissatisfied buyers.
The consumer dispute resolution committee will hear from both consumers and businesses about the dispute, decide compensation and notify both sides of its decision. If neither side raises any objection within 14 days upon its decision, it becomes legally binding.
The law is expected to greatly enhance consumer rights as businesses will be obliged to compensate not only consumers who file the complaint, but also others affected by the same case. Manufactures and services providers will likely face more complaints from consumers seeking compensation in the future, which will incur substantial costs.
These consumer rights protection bodies will be entitled to file suits against companies from next year under the amended law.
Sixty-two residents of apartments built by Woolim Construction in Chongju, North Chungchong Province, applied to the KCA for grievance settlement against the builder's subcontractor over flawed sash windows.
A KCA official said that its dispute resolution committee will soon take up the issue as all paper work has already been completed. ``We think more apartment residents will join the case, once we post a public notice, as the apartment complex has more than 1,000 units.''
He also expected more consumers to file a complaint against businesses for compensation in areas of apartment after-sales service, mobile communication services and agricultural produces.