SEOUL METROPOLITAN GOVERNMENT FRAMEWORK ORDINANCE ON CONSUMERS

Wholly Amended by Ordinance No. 4732, Jan. 8, 2009

Amended by Ordinance No. 5137, Jul. 28, 2011

Ordinance No. 5272, Mar. 15, 2012

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 delegated under the Framework Act on Consumers and the Enforcement Decree of the aforesaid Act, consumer rights, interests and responsibilities, the responsibilities of the Seoul Metropolitan Government and business entities, the role of consumers' 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 ing 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 "Metropolitan Government") that may affect their daily life as consumers and business entities' business activities;

5. A right to have proper compensation for an injury or 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 safe and comfortable environments for their daily life as consumers.

Article 3 (Consumers' Responsibilities)

(1) A consumer shall choose goods or services in a proper manner and shall exercise his/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/her own rights and interests;

(3) A consumer shall actively fulfill his/her role for improving his/her daily life as a consumer by conducting autonomous and reasonable activities and practicing resource-saving and environment-friendly consumption in his/her daily life as a consumer.

Article 4 (Metropolitan Government's Responsibilities)

The Metropolitan Government shall take responsibilities for taking the following measures so that consumers' fundamental rights under Article 2 can be realized:

1. The rearrangement of administrative organizations necessary to enhance consumer rights and interests and to improve operation of such organizations;

2. The establishment and implementation of policies to enhance consumer rights and interests;

3. The support and promotion of consumers' sound and autonomous organizational activities.

Article 5 (Business Entities' Responsibilities)

(1) Every business entity shall take measures necessary for protecting consumers from suffering from a hazard caused by goods or services to their life, body, or property;

(2) No business entity shall apply any term, condition, or method of transaction that is likely to affect consumers' reasonable choice or infringe on their interest, when it supplies goods or services.

(3) Every business entity shall provide consumers with correct information about goods or services in good faith;

(4) Every business entity shall deal with consumers' personal information in a manner that prevents such information from being lost, stolen, leaked, altered, or damaged.

(5) Every business entity 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").

(6) Every business entity shall settle or compensate for consumer's complaints, injuries, or damage caused by a defect on goods or services and shall compensate consumers for any injury or damage caused by the failure to perform its obligation.

CHAPTER II ENHANCEMENT OF CONSUMER RIGHTS AND INTERESTS

Article 6 (Properness of Measurement, Specifications, Transactions, etc.)

(1) The Metropolitan Government shall formulate policies necessary for the measurement of goods or services in order to prevent consumers from suffering from any injury or damage caused by measurement in transactions with business entities.

(2) The Metropolitan Government shall conduct inspections on whether business entities comply with regulations on the measurement and specifications provided by relevant Acts and subordinate statutes to ensure reasonable consumption and shall, if any business entity violates any regulation, take necessary measures pursuant to relevant provisions.

(3) The Seoul Metropolitan City Mayor (hereinafter referred to as the "Mayor") may conduct the inspections under paragraph (2) jointly with consumers' organizations or entrust consumer's organizations with such inspections.

(4) The Metropolitan 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 commerce transactions.

Article 7 (Providing Consumers with Information)

(1) The Metropolitan 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 Metropolitan Government shall formulate policies necessary for providing consumers with information about business entities in relation to 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.

Article 8 (Improvement of Consumers' Abilities)

(1) The Metropolitan 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 life as consumers.

(2) The Metropolitan Government may entrust citizens, consumers' organizations, research or education institutions with the conduct of consumer education in order to improve consumers' abilities and may provide trustees with financial support within budgetary limits.

Article 9 (Protection of Personal Information)

The Metropolitan Government shall formulate policies necessary for preventing consumers from suffering from any unreasonable injury or damage caused by loss, theft or leakage of, or alteration or damage to, personal information in transactions with business entities.

Article 10 (Installation of Testing and Inspection Facilities, etc.)

(1) The Metropolitan Government, a consumer, or a consumers' 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 Metropolitan Government conducts a test or an inspection pursuant to paragraph (1), it shall make a public announcement of the results thereof and shall take measures necessary for consumer rights and interests.

(3) The Metropolitan Government may provide support to a consumers' 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 Metropolitan 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 by no later than November 30 each year in accordance with the master 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 implementing 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 implementation of the implementation plan for the previous year, submit a report on the results to the Fair Trade Commission by no later than January 31 each year, and disclose the results transparently through its web-site or by other means.

Article 12 (Establishment of 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 Committee)

(1) The Committee shall be comprised of no more than 11 members, including one chairperson.

(2) The chairperson and vice chairperson shall be elected by and from among members.

(3) The Industrial and Economic Policy Officer shall serve as an ex officio member of the Committee, and commissioned members shall be commissioned by the Mayor from among councilors of the Seoul Metropolitan Council, representatives of consumers, representatives of business entities, or appropriate experts.

(4) The Committee may establish a working committee to efficiently carry out 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 for each commissioned member shall be two years but may be renewed consecutively: Provided, That the term of office for a Committee member filling a vacancy shall be the remaining term of office for his/her predecessor.

(6) The Committee shall have one secretary who shall take charge of clerical work of the Committee, and the head of the Living Economy Department shall serve as secretary.

Article 14 (Functions of Committee, etc.)

(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 implementation plan;

3. Matters concerning whether to disclose recommendations given with regard to defective goods or services specified in Article 49 (1) of the Act;

4. Matters concerning financial support to citizens, consumer organizations, and research and educational institutions;

5. Other matters deemed necessary and brought for deliberation by the Committee chairperson.

(2) 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 3, to the working committee, subject to resolution by the Committee.

Article 15 (Committee Chairperson's Duties)

(1) The Committee chairperson shall represent the Committee and shall have overall control of business affairs of the Committee.

(2) If the Committee chairperson is unable to perform his/her duties due to extenuating circumstances, 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 meeting shall be duly formed upon the attendance of a majority of all incumbent members and shall adopt a resolution by a concurrent vote of a majority of members present at the meeting.

Article 17 (Allowances, etc.)

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

CHAPTER IV ESTABLISHMENT OF CONSUMER LIFE CENTER, ETC. AND SETTLEMENT OF DISPUTES

Article 18 (Establishment of Consumer Life Center, etc.)

(1) The Mayor shall establish and operate a consumer life center for consumer rights and interests.

(2) The consumer life center shall carry out the following business activities:

1. Counseling services for the settlement of consumers' complaints and damage, providing consumers with information thereon, and recommendations for settlement between 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, etc.)

(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 injuries or 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 wholly or partially entrust consumers' organizations or other outside specialized institutions with the operation of the consumer life center or the electronic commerce center.

(2) The Seoul Metropolitan Government Ordinance on the Entrustment of Administrative Work to Private Sector shall apply mutatis mutandis to the procedure and method necessary for entrustment under paragraph (2).

Article 21 (Direction, Supervision, etc.)

(1) The Mayor may direct and supervise the operations of a corporation or organization that carry out entrusted affairs to ensure lawfulness and appropriateness in carrying out the entrusted affairs under Article 22.

(2) Matters necessary for the management and operation of the consumer life center and the electronic commerce center shall be separately determined by the Mayor.

Article 22 (Remedial Measures for Consumers' Injuries or Damage)

(1) A consumer may file a petition for remedial measures for his/her injuries or damage caused by using goods or services with the Korea Consumer Agency, the Metropolitan Government, an appropriate administrative agency, or a consumers' organization registered pursuant to Article 25.

(2) The Metropolitan Government or a consumers' organization shall, upon receiving a petition for remedial measures under paragraph (1), notify the business entity at issue of the petition and may recommend it to take appropriate measures, such as exchange, refund, and compensation through an agreement.

(3) The general guidelines for the settlement of consumers' disputes and the guidelines for the settlement of consumers' disputes on each product under Article 8 of the Enforcement Decree of the Framework Act on Consumers (hereinafter referred to as the "Decree") shall apply mutatis mutandis to remedial measures to be taken for consumers' injuries or damage under paragraph (2).

Article 23 (Settlement of Consumers' Disputes)

(1) If a consumer's dispute is not settled, the Mayor may request the Korea Consumer Agency Committee for the Mediation of Consumers' Disputes to mediate the dispute.

(2) If several consumers have sustained identical or similar injuries or damage, the Metropolitan Government may request the Committee for the Mediation of Consumers' Disputes to mediate disputes in a package with regard to the cases specified in Article 68 (1) of the Act.

CHAPTER V REGISTRATION, PROMOTION, SUPPORT, ETC. OF CONSUMERS' ORGANIZATIONS

Article 24 (Business Activities of Consumers' Organizations)

(1) A consumers' organization shall carry out the following business activities:

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 terms and conditions, including prices, or manners of transactions;

3. Survey and analysis on consumer issues;

4. Education of consumers;

5. Counseling services for the settlement of consumers' complaints and damages, providing consumers with information thereon, and recommendation of the settlement between parties.

(2) No consumers' organization shall use any information known to it in the course of its business activities for any purpose other than the purpose of enhancing consumer rights and interests,  and a consumers' organization shall be liable for damage inflicted on a business entity or an association of business entities by using such information for any purpose other than a purpose specified above.

Article 25 (Registration of Consumers' Organizations, etc.)

(1) A consumers' organization that intends to register itself with the Metropolitan Government pursuant to Article 29 (1) of the Act shall prepare an application for registration (or amendment to registration) of the consumers' organization (hereinafter referred to as "application") in the Form, describing the following matters therein:

1. Purposes;

2. Name;

3. Domicile of its principal place of business and domiciles of its chapters;

4. The representative's name, resident registration number, address, and telephone number;

5. Date of establishment;

6. Number of members (including the number of chapters);

7. Details of major business activities.

(2) The application under paragraph (1) shall be accompanied by data regarding the following matters:

1. Articles of association (or bylaws, if the organization is not a corporation);

2. The electronic computer system and office with which the business activities under the subparagraphs of Article 24 (1) can be processed;

3. At least five full-time workers who can carry out the business activities under the subparagraphs of Article 24 (1);

4. Financial status.

(3) Upon receiving an application for registration from a consumers' 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 and shall make a decision on whether to register the organization.

(4) If there is a change in a matter specified in paragraph (1) 1 through 4, 6 (limited to the number of chapters), and 7 and paragraph (2), the organization shall prepare an application in the Form and shall submit it to the Mayor within 20 days from the date of the change, along with the required documents.

Article 26 (Revocation of Registration)

(1) If a consumers' organization obtains the registration under Article 25 by fraud or other wrongful means, the Mayor shall revoke the registration.

(2) If a registered consumers' organization fails to meet the requirements under the subparagraphs of Article 29 (1) of the Act, the Mayor may order it to take corrective measures 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 Metropolitan Government may grant subsidies within budgetary limits, if it is deemed necessary for the promotion and sound development of registered consumers' organizations.

(2) The Mayor shall conduct evaluations on programs conducted by consumers' organizations with subsidies each year and shall reflect the results of the evaluations on the ion of subsidized programs for the following year.

(3) The criteria, procedure, and method for the grant of subsidies under paragraph (1) shall be governed by the Seoul Metropolitan Government Ordinance on the Management of Subsidies.

Article 28 (Protection of Disadvantaged Classes)

The Metropolitan 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)

The consumer protection center established and operated pursuant to the previous provisions as at the time this Ordinance enters into force shall be deemed the consumer life center established pursuant to the amended provisions of Article 18.

Article 3 (Transitional Measures concerning Registration of Consumers' Organizations)

Consumers' organizations registered pursuant to the previous provisions as at the time this Ordinance enters into force shall be deemed consumers' organizations registered pursuant to the amended provisions of Article 25.

ADDENDA

Article 1 (Enforcement Date)

This Ordinance shall enter into force on the date of its promulgation.

Article 2 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Ordinance shall enter into force on the date of its promulgation.

Article 2 Omitted.