FTC recommends credit cards for direct purchases from overseas

By Yoon Ja-young

When making direct purchases abroad, it is better to use credit cards, and be sure to avoid foreign online shopping malls that aren’t widely known. These are some of the tips provided by the Fair Trade Commission (FTC) for making direct purchases ahead of Black Friday on Nov. 27.

Black Friday is the start of the Christmas shopping season in the United States, when retailers sell off their stock with an average 40 percent discount.

An increasing number of Koreans are making direct purchases during this season, but also consumer complaints are increasing. The Korea Consumer Agency said it received 3,412 complaints regarding online purchases from foreign businesses in the first half of this year.

Ahn Hong-sun, a housewife in South Gyeongsang Province, for instance, purchased shoes by paying an overseas shopping agent 134,000 won.

Such shopping agents help local consumers make purchases overseas, by going to shopping malls in other countries to buy the items ordered by the consumers.

As she wasn’t satisfied with the quality, Ahn asked for a refund, but the agent demanded that she pay a 26,000 won commission on top of the 17,000 won delivery fee.

According to the FTC, overseas shopping agents sometimes say that they don’t allow refunds or exchanges. However, they are also subject to Korean regulations just like other online shopping malls. In Ahn’s case, she can withdraw her purchase within seven days after receiving the product, the FTC explained.

“The consumer should shoulder fees needed for refunds when the refund is due to them changing their mind, but shopping agents cannot levy a penalty for this,” said Park Se-min, an official in charge of e-commerce at the commission.

He recommended that consumers thoroughly check information on refunds and exchanges when purchasing through overseas shopping agents.

The FTC also advises consumers to check whether an agent is officially registered as a telemarketing business. Paying with a credit card is the best option for consumers, as they can request the credit card company to stop payment in case of a refund or cancellation, according to the FTC.

Some consumers go directly to foreign shopping mall websites and have the items sent to their homes. These overseas shopping malls, however, aren’t subject to Korean regulations.

The FTC thus advised that consumers should use shopping malls that are widely known and look for an “international warranty” in case there is a problem with their purchases.