Advisory Case on Reviewing Product Terms and Conditions and Adjusting Refund Terms

An online service provider requested advice in order to reduce customer confusion over the terms and refund conditions for certain products and to prevent legal problems. In particular, although the refund criteria differed by product, situations arose in which some users raised objections, claiming that they were not given consistent criteria when requesting refunds. In addition, a review was needed as to whether maintaining the existing terms of use and privacy terms posed any legal problems.

After reviewing the client's refund conditions, our firm advised clarifying the criteria applicable by membership type and establishing a procedure for prior notice of and consent to the amended terms. We also proposed adjusting the refund criteria for certain products to be consistent and devising a way to maintain a balance between the company and the customer in the case of a mid-term refund. In addition, we reviewed the feasibility of maintaining the terms of use and privacy terms and advised on the need to reflect the latest statutes.

Based on Your Legal Team's advice, the client consistently overhauled the refund rules for each product and established a system for clearly notifying both existing and new members of the refund conditions. As a result, customer complaints decreased, and the possibility of future legal disputes was minimized.