Fair trade watchdog sets standard contract terms for yoga, Pilates lessons

Instructors demonstrate Pilates during a startup expo in Seoul in this 2023 photo. Yonhap

The fair trade watchdog on Monday introduced standard contract terms for yoga and Pilates lessons, including refund guidelines, amid a growing number of consumer disputes in the sector.

The standard terms and conditions unveiled by the Fair Trade Commission (FTC) came in response to consumer complaints over unfair refund practices and losses caused by the sudden suspension or closure of businesses.

The standardized terms are not legally binding, but serve as guidelines for businesses.

According to the FTC, the number of consumer complaints received by the Korea Consumer Agency came to 1,211 in 2024, up from 818 in 2021.

"Our investigation showed that disputes between business owners and customers frequently arose during the process of canceling enrollments due to ambiguous refund calculation standards and refunds assessed in ways unfavorable to consumers," the FTC said.

Under the standard contract terms, when customers wish to cancel their enrollment, cancellation fees should be calculated based on the actual amount paid rather than the original price before discounts.

The FTC said businesses should also specify whether refunds are calculated based on the number of lessons taken or the enrollment period, while clearly explaining the refund calculation method so that customers are fully informed before signing a contract.

In addition, the standard contract terms call for businesses planning to suspend operations or close permanently to notify customers at least 14 days in advance to help prevent losses caused by unexpected business closures.

Businesses covered by guarantees insurance should also inform customers of the policy type and coverage before they make a purchase decision.

"The standardized contract terms for the yoga and Pilates industry are expected to reduce disputes between businesses and customers, improving trust and predictability," the FTC said.