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SEOUL METROPOLITAN GOVERNMENT FRAMEWORK ORDINANCE ON CONSUMERS

CHAPTER I GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Ordinance is to promote sound and reasonable consumption and enhance consumer rights by providing for matters mandated under the Framework Act on Consumers and the Enforcement Decree of the same Act, consumer rights, interests and responsibilities, the responsibilities of the Seoul Metropolitan Government and enterprisers, the role of consumer organizations, and basic matters for the implementation of policies on the enhancement of consumer rights and interests.

Article 2 (Consumers' Fundamental Rights) Consumers shall have the following fundamental rights:
1. A right to be protected from a hazard caused by goods or services (hereinafter referred to as "goods or services") to their life, body, or property;
2. A right to be provided with knowledge and information necessary for selecting goods or services;
3. A right to freely choose the other party to a transaction, the place of purchase, price, and terms and conditions of a transaction in using goods or services;
4. A right to have their opinions reflected in policies of the Seoul Metropolitan Government (hereinafter referred to as the "Seoul Government"), the business activities of enterprisers, etc. that may affect their daily lives as consumers;
5. A right to have proper compensation for any damage sustained by using goods or services through speedy and fair proceedings;
6. A right to receive education necessary for reasonable consumption;
7. A right to form organizations to enable them to enhance their own rights and interests and conduct activities through such organizations;
8. A right to consume in a safe and comfortable environment for their daily lives as consumers.

Article 3 (Consumers' Responsibilities) (1) A consumer shall choose goods or services in a proper manner and shall exercise his or her fundamental rights as a consumer under Article 2 in a fair manner.
(2) A consumer shall endeavor to acquire knowledge and information necessary for enhancing his or her own rights and interests.
(3) A consumer shall actively play a role in improving his or her daily life as a consumer by conducting autonomous and reasonable activities and practicing resource-saving and environment-friendly consumption in his or her daily life as a consumer.

Article 4 (Seoul Government's Responsibilities) The Seoul Government shall take responsibilities for taking the following measures so that consumers' fundamental rights under Article 2 can be realized: <Amended by Ordinance No. 7146, May 16, 2019>
1. The rearrangement of administrative organizations necessary to enhance consumer rights and interests and the improvement of operation of such organizations;
2. The establishment and implementation of policies to enhance consumer rights and interests;
3. The support for and promotion of consumers' sound and autonomous organizational activities;
4. The improvement of relevant laws and systems to guarantee the fundamental rights of consumers and to enhance their rights and interests.

Article 5 (Enterprisers' Responsibilities) (1) Every enterpriser shall develop measures necessary for protecting consumers from suffering from a hazard caused by goods or services to their life, body, or property.
(2) No enterpriser shall apply any term, condition, or method of transaction that is likely to affect consumers' reasonable choice or to infringe on their interest, when it supplies goods or services.
(3) Every enterpriser shall provide consumers with correct information about goods or services in good faith.
(4) Every enterpriser shall deal with consumers' personal information in a manner that prevents such information from being lost, stolen, leaked, altered, or damaged.
(5) Every enterpriser shall settle or compensate for consumer's complaints or damage caused by a defect on goods or services and shall compensate consumers for any damage caused by the failure to perform his or her obligation.
(6) Every enterpriser shall comply with the standards applicable to the enhancement of consumer rights and interests under Article 20 of the Framework Act on Consumers (hereinafter referred to as the "Act").


CHAPTER II ENHANCEMENT OF CONSUMER RIGHTS AND INTERESTS Article 6 (Properness of Measurement, Specifications, and Transactions) (1) The Seoul Government shall formulate policies necessary for the measurement of goods or services in order to prevent consumers from suffering from any damage caused by measurement in transactions with enterprisers.
(2) The Seoul Government shall conduct inspections on whether enterprisers comply with regulations on the measurement and specifications provided by relevant statutes and regulations to ensure reasonable consumption and shall, if any enterpriser violates any regulation, take necessary measures pursuant to the relevant provisions.
(3) The Seoul Metropolitan City Mayor (hereinafter referred to as the "Mayor") may conduct the inspections under paragraph (2) jointly with consumer organizations, etc. or entrust consumer organizations, etc. with such inspections.
(4) The Seoul Government shall formulate policies necessary for consumer's rights and interests in specific forms of transactions, such as transactions under a standardized contract form, door-to-door sales, multi-level marketing, installment sales, telemarketing, and electronic transactions.

Article 7 (Providing Consumers with Information) (1) The Seoul Government shall inform consumers of major policies and major decisions on consumer rights and interests so that consumers' fundamental rights can be realized.
(2) The Seoul Government shall formulate policies necessary for providing consumers with information about enterprisers in relation to the terms and conditions of transactions of goods or services, methods of transactions, quality, safety, and environmental effects so that consumers can make reasonable choices of goods or services.
(3) In order to prevent loss due to financial fraud such as voice phishing (referring to telecommunications-based financial fraud defined in subparagraph 2 of Article 2 of the Special Act on the Prevention of Loss Caused by Telecommunications-Based Financial Fraud and Refund for Loss; hereinafter the same shall apply), the Seoul Government shall provide consumers with information on countermeasures including prevention. <Newly Inserted by Ordinance No. 7146, May 16, 2019>

Article 8 (Improvement of Consumers' Abilities) (1) The Seoul Government shall conduct educational programs necessary for guiding consumers to exercise their rights in a proper manner, improving consumers' abilities to make judgments on goods or services, and leading consumers to take responsibilities for their choices in their daily lives as consumers.
(2) The Seoul Government shall conduct educational programs necessary to keep a safe financial life for citizens and to prevent them from suffering loss due to financial fraud. <Newly Inserted by Ordinance No. 7146, May 16, 2019>
(3) The Seoul Government may entrust citizens, consumer organizations, research or education institutions, etc. with the conduct of consumer education in order to improve consumers' abilities and may provide them with financial support within budgetary limits. <Amended by Ordinance No. 7146, May 16, 2019>

Article 9 (Protection of Personal Information) The Seoul Government shall formulate policies necessary for preventing consumers from suffering from any unreasonable damage caused by loss, theft or leakage of, or alteration or damage to, personal information in transactions with enterprisers.

Article 10 (Installation of Testing and Inspection Facilities) (1) The Seoul Government, a consumer, or a consumer organization may, if deemed necessary or upon a consumer's request, request a national or public testing or inspection institution or the Korea Consumer Agency under Article 33 of the Act to conduct a test, an inspection, or an investigation with regard to goods or services in question.
(2) When the Seoul Government conducts a test or an inspection pursuant to paragraph (1), it shall make an announcement of the results thereof and shall take measures necessary for consumer rights and interests.
(3) The Seoul Government may provide support to a consumer organization so that it can be equipped with facilities to conduct a test or an inspection about the specifications, quality, safety, etc. of goods or services.
(4) If necessary for establishing a policy on consumer rights and interests, the Seoul Government may request an institution under Article 17 (5) of the Act to conduct a survey or research.

CHAPTER III SYSTEM FOR IMPLEMENTATION OF CONSUMER POLICIES Article 11 (Establishment of Implementation Plans) (1) The Mayor shall establish an implementation plan for the following year with regard to consumer policies no later than November 30 each year in accordance with a basic plan for consumer policies and implementation plans from each central administrative agency under Articles 21 and 22 of the Act.
(2) The Mayor shall formulate financial measures necessary for effectively promoting the comprehensive implementation plan under Article 22 (3) of the Act, such as budgeting for costs and expenses required each year.
(3) The Mayor shall evaluate the results of the promotion of the implementation plan for the previous year, submit a report on the results to the Fair Trade Commission no later than January 31 each year, and disclose the results transparently on its website or by other means.

Article 12 (Establishment of the Seoul Metropolitan Government Consumer Policy Committee) The Mayor may establish and operate the Seoul Metropolitan Government Consumer Policy Committee (hereinafter referred to as the "Committee") to deliberate on policies for the enhancement of consumer rights and interests and the improvement of daily life as consumers.

Article 13 (Composition of the Committee) (1) The Committee shall be comprised of not more than 11 members, including one chairperson.
(2) The chairperson and the vice chairperson shall be elected by and from among members.
(3) The Director-General of Labor and Livelihood Security shall serve as an ex officio member of the Committee, and commissioned members shall be commissioned by the Mayor from among members of the Seoul Metropolitan Council, representatives of consumers, representatives of enterprisers, or relevant experts. <Amended by Ordinance No. 5137, Jul. 28, 2011; Ordinance No. 5272, Mar. 15, 2012; Ordinance No. 6386, Jan. 5, 2017; Ordinance No. 6464, May 18, 2017; Ordinance No. 7154, May 16, 2019>
(4) The Committee may establish a working committee to efficiently perform its business affairs, and matters necessary for the organization and operation of the working committee shall be determined by the Committee chairperson through resolution by the Committee.
(5) The term of office of each commissioned member shall be two years but may be renewed consecutively: Provided, That the term of office for a Committee member for filling a vacancy shall be the remaining term of office for his or her predecessor.
(6) The Committee shall have an executive secretary who shall take charge of the administrative affairs of the Committee, and the Director of Fair Economy shall serve as the executive secretary. <Amended by Ordinance No. 5137, Jul. 28, 2011; Ordinance No. 6386, Jan. 5, 2017; Ordinance No. 6464, May 18, 2017; Ordinance No. 7154, May 16, 2019>

Article 14 (Functions of the Committee) (1) The Committee shall deliberate on the following matters:
1. Matters concerning the establishment and implementation of major policies on the enhancement of consumer rights and interests;
2. Matters concerning the implementation plan under Article 11 and evaluation of the results of the promotion thereof;
3. Matters concerning the evaluation of Ordinances and Rules of the Seoul Government and autonomous Gus that restrict or are likely to restrict the fundamental rights of consumers;
4. Matters concerning whether recommendations with regard to defective goods, etc. specified in Article 49 (1) of the Act have been announced;
5. Matters concerning financial support for citizens, consumer organizations, research and educational institutions, etc.;
6. Other matters deemed necessary and brought for deliberation by the Committee chairperson.
(2) To enhance consumer rights and interests, the Mayor may notify an autonomous Gu of the results of deliberation under paragraph (1) 3 and recommend it to improve the relevant municipal Ordinances and Rules.
(3) In order to operate the Committee efficiently, the Committee chairperson may delegate some functions of the Committee, except the functions under paragraph (1) 1 through 4, to the working committee, following resolution by the Committee.
[This Article Wholly Amended by Ordinance No. 7146, May 16, 2019]

Article 15 (Duties of Committee Chairperson) (1) The Committee chairperson shall represent the Committee and have general supervision and control of the business affairs of the Committee.
(2) If the Committee chairperson is unable to perform his or her duties due to any unavoidable cause, the vice chairperson shall act on behalf of the chairperson.

Article 16 (Meetings) (1) A regular meeting of the Committee shall be held once a half year, while a special meeting shall be held whenever the Committee chairperson deems it necessary or a majority of all incumbent members request the meeting.
(2) A majority of the members shall constitute a quorum, and any decision thereof shall require the concurrent vote of a majority of those present.

Article 17 (Allowances) Allowances, travel expenses, and other necessary expenses may be paid Committee members, experts, or other persons who attend a meeting of the Committee, within budgetary limits: Provided, That the foregoing shall not apply where a public official member attends a meeting in direct connection with his or her duties.

CHAPTER IV ESTABLISHMENT OF CONSUMER LIFE CENTER AND SETTLEMENT OF DISPUTES Article 18 (Establishment of Consumer Life Center) (1) The Mayor shall establish and operate a consumer life center for consumer rights and interests.
(2) The consumer life center shall conduct the following business activities:
1. Providing counseling services for the settlement of consumers' complaints and damage and information thereon for consumers, and making recommendations for settlement between the parties;
2. Providing consumers with education and information;
3. Other matters deemed necessary by the Mayor for consumer rights and interests.

Article 19 (Establishment of Electronic Commerce Center) (1) The Mayor may establish and operate an electronic commerce center for consumer rights and interests in electronic commerce transactions.
(2) The electronic commerce center shall perform the following business affairs:
1. Counseling services for consumers with regard to electronic commerce transactions, including telemarketing, and remedial measures for damage sustained by consumers;
2. Consumer education and public relations activities for the promotion of electronic commerce transactions;
3. Management of the integrated management system and data of business entities engaging in electronic commerce;
4. Other matters deemed necessary by the Mayor for consumer rights and interests in electronic commerce transactions.

Article 20 (Entrustment of Operation of Centers) (1) The Mayor may fully or partially entrust consumer organizations or other external specialized institutions with the operation of a consumer life center or an electronic commerce center.
(2) The Seoul Metropolitan Government Ordinance on the Entrustment of Administrative Affairs to the Private Sector shall apply mutatis mutandis to the procedures and methods necessary for entrustment under paragraph (2).

Article 21 (Direction and Supervision) (1) The Mayor may direct and supervise the operations of a corporation or organization that performs entrusted affairs to ensure lawfulness and appropriateness in performing the entrusted affairs under Article 22.
(2) Matters necessary for the management and operation of a consumer life center and an electronic commerce center shall be separately determined by the Mayor.

Article 22 (Remedial Measures for Consumers' Damage) (1) A consumer may file a petition for remedial measures for his or her damage caused by using goods or services with relevant administrative agencies, such as the Korea Consumer Agency and the Seoul Government, or a consumer organization registered pursuant to Article 25.
(2) The Seoul Government or a consumer organization registered in the Seoul Government shall, upon receiving a petition for remedial measures under paragraph (1), notify the relevant enterpriser of the petition and may recommend it to take appropriate measures, such as exchange, refund, and compensation through an agreement.
(3) The general criteria for the settlement of consumer disputes and the criteria for the settlement of consumer disputes by items under Article 16 (2) of the Act and Article 8 of the Enforcement Decree of the Framework Act on Consumers (hereinafter referred to as the "Decree") may apply mutatis mutandis to remedial measures to be taken for consumers' damage under paragraph (2). <Amended by Ordinance No. 6093, Jan. 7, 2016>

Article 23 (Settlement of Consumer Disputes) (1) If a consumer dispute is not settled, the Mayor may request the Consumer Dispute Settlement Commission of the Korea Consumer Agency to mediate the dispute.
(2) If several consumers have sustained identical or similar damage, the Seoul Government may request the Consumer Dispute Settlement Commission to mediate the disputes collectively with regard to the cases specified in Article 68 (1) of the Act.

CHAPTER V REGISTRATION, PROMOTION, AND SUPPORT OF CONSUMER ORGANIZATIONS Article 24 (Business Affairs of Consumer Organizations) (1) A consumer organization shall perform the following business affairs:
1. Recommendation of policies on consumer rights and interests;
2. Testing and inspection of specifications, quality, safety, and environmental effects of goods or services and survey and analysis on the terms and conditions, including prices, or methods of transactions;
3. Survey and analysis on consumer issues;
4. Education of consumers;
5. Provision of counseling services for the settlement of consumers' complaints and damage and information thereon for consumers, and recommendation of the settlement between parties.
(2) No consumer organization shall use any information which becomes known to it in the course of performing its business affairs for any purpose other than the purpose of enhancing consumer rights and interests, and a consumer organization shall be liable for damage inflicted on an enterpriser or an association of enterprisers by using such information for any purpose other than the specified purpose.

Article 25 (Registration of Consumer Organizations) (1) A consumer organization that intends to register itself with the Seoul Government pursuant to Article 29 (1) of the Act shall submit to the Mayor an application for registration under Article 23 (3) of the Decree, along with the following documents:
1. The articles of association (referring to bylaws, if the organization is not a legal entity);
2. Minutes of the general meetings for the relevant and preceding years;
3. Business plans and budgetary bills of revenues and expenditures for the relevant and preceding years, and a statement of accounts for the preceding year;
4. The electronic computer system and office and at least five full-time workers for the business affairs under the subparagraphs of Article 28 (1) of the Act;
5. Current status of branches (limited to only where branches are established);
6. The list of members;
7. Documents evidencing the performances of public service activities for at least the preceding one year.
(2) Upon receipt of an application for registration from a consumer organization pursuant to paragraph (1), the Mayor shall examine whether the organization meets all requirements under the subparagraphs of Article 29 (1) of the Act, determine whether to permit the registration thereof no later than 20 days from the date of receipt of the application, and then inform the organization of the result of and grounds for such determination.
(3) Where any of the following matters is changed, a consumer organization registered pursuant to Article 29 (1) of the Act shall notify the Mayor of such fact no later than 20 days from the date such change occurs:
1. Name;
2. Seat of the principal office;
3. Name of the representative;
4. Details of main business activities.
[This Article Wholly Amended by Ordinance No. 7146, May 16, 2019]

Article 26 (Revocation of Registration) (1) If a consumer organization obtains the registration under Article 25 by fraud or other improper means, the Mayor shall revoke the registration.
(2) If a registered consumer organization fails to meet the requirements under the subparagraphs of Article 29 (1) of the Act, the Mayor may order it to satisfy the requirements within three months and may revoke the registration if it fails to meet the requirements even after the lapse of the period.

Article 27 (Grant of Subsidies) (1) The Seoul Government may grant subsidies within budgetary limits, if it is deemed necessary for the promotion and sound development of registered consumer organizations.
(2) The Mayor shall conduct evaluations on programs conducted by consumer organizations with subsidies each year and shall reflect the results of the evaluations on the selection of subsidized programs for the following year.
(3) The criteria, procedures, and methods for the grant of subsidies under paragraph (1) shall be governed by the Seoul Metropolitan Government Ordinance on the Management of Local Subsidies. <Amended by Ordinance No. 5930, May 14, 2015>

Article 28 (Protection of Disadvantaged Classes) The Seoul Government shall formulate policies on the preferential protection of classes vulnerable to danger, including children, the elderly, the infirm, and the disabled.


ADDENDA
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Consumer Protection Center)
A consumer protection center established and operated pursuant to the previous provisions as at the time this Ordinance enters into force shall be deemed a consumer life center established pursuant to the amended provisions of Article 18.
Article 3 (Transitional Measures concerning Registration of Consumer Organizations)
Consumer organizations registered pursuant to the previous provisions as at the time this Ordinance enters into force shall be deemed consumer organizations registered pursuant to the amended provisions of Article 25.
ADDENDA <Ordinance No. 5137, Jul. 28, 2011>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Ordinance No. 5272, Mar. 15, 2012>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Ordinance No. 5930, May 14, 2015>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Ordinance No. 6093, Jan. 7, 2016>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDUM <Ordinance No. 6386, Jan. 5, 2017>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDA <Ordinance No. 6464, May 18, 2017>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on July 1, 2017.
Articles 2 and 3 Omitted.
ADDENDUM <Ordinance No. 6851, Mar. 22, 2018>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDA <Ordinance No. 7046, Mar. 28, 2019>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Ordinance No. 7146, May 16, 2019>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDUM <Ordinance No. 7154, May 16, 2019>
This Ordinance shall enter into force on the date of its promulgation.