Strengthening Transparency in Wedding Costs
With the emergence of the term 'weddingflation' highlighting the soaring costs of weddings, the government has announced policies to enhance price transparency in the wedding services industry.
On the 28th, the Fair Trade Commission announced that it will issue an administrative notice for an amendment to the 'Notice of Important Indications and Advertising Matters', which includes imposing fines of up to 100 million KRW on companies that do not disclose wedding service prices.
This amendment mandates that businesses in the wedding venue and wedding preparation agency sectors must provide detailed information about basic services and optional items, including prices, penalties for contract termination, and refund standards.
Notably, fines of up to 10 million KRW will be imposed on individuals if staff members are involved in the omission of price information.
No More 'Hidden Wedding Expenditures'
Until now, engaged couples have expressed significant dissatisfaction due to a lack of prior information during the wedding preparation process, such as with studios, dresses, and makeup. The absence of transparent price information often led to unexpected additional costs, resulting in frequent experiences of 'hidden wedding expenditures.'
In response, the Fair Trade Commission has also prepared 'model templates' to ensure that businesses fully disclose important information.
The display methods must be through either the business's website or the Korea Consumer Agency's Price Information website (www.price.go.kr) along with contract cover pages.
Even when wedding preparation agencies provide services through partner companies, they are required to provide the same information for each partner. This is intended to assist consumers in making informed choices by comparing wedding-related services and providers.
Price Disclosure Obligation for Yoga and Pilates
The amendment also includes businesses in the yoga and Pilates sectors as mandatory targets for the provision of important information, including pricing.
Previously, yoga and Pilates were classified as 'free industries' and were not covered under the scope of laws like the 'Act on the Installation and Utilization of Sports Facilities', limiting their regulation and oversight.
As a result, consumer harm related to specific contract details and mid-term cancellation conditions occurred frequently.
In the last four years, there have been as many as 4,152 consultations related to damages in yoga and Pilates reported to the Korea Consumer Agency.
The Fair Trade Commission has decided to apply the same price indication system used for gyms and similar sports facilities to yoga and Pilates.
Now, yoga and Pilates providers must specify basic fees, additional costs, refund criteria, and other contract-related information on-site and in registration applications, as well as disclose this information in advertisements.
Disclosure of Insurance Information to Prevent 'Disappearing Businesses'
Gyms, yoga, and Pilates businesses will also be required to disclose whether they have taken out liability insurance and relevant information (such as the insurance provider, coverage period, and coverage amount). This measure aims to minimize issues related to sudden closures, business exits, and so-called 'disappearing businesses'.
According to a survey by the Ministry of Culture, Sports, and Tourism, 16.5% of users have experienced such harm, with 68.3% of them reportedly taking no action.
The Fair Trade Commission expects that disclosing insurance information will help consumers choose trustworthy companies.
Strengthening Consumer Rights Protection
A Fair Trade Commission official stated, "By making service and price information, as well as refund standards for similar sectors such as yoga and Pilates, and the wedding service industry public, we aim to prevent consumer harm caused by 'hidden contracts' and 'disappearing businesses'."
The amendment is set to be finalized and implemented after an administrative notice period from the 29th until the 18th of the following month, during which opinions will be gathered from related institutions and stakeholders, followed by a vote in the Fair Trade Commission plenary session.
Going forward, it is anticipated that engaged couples will face fewer unexpected additional costs when signing contracts for wedding services, and users of yoga and Pilates will experience a significant reduction in incidents related to 'disappearing businesses'. This measure is expected to better protect consumer rights and enhance the trustworthiness and health of the overall market.
Image source: Reference photos for understanding the article / gettyimagesbank, Fair Trade Commission / Photo=Insight
